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2018 (3) TMI 1113 - AT - Central ExciseCENVAT credit - manufacture of plastic closure (caps for plastic bottle and cans etc) - The case of the Department is that these goods are not input but are finished goods hence are not used in or in relation to the manufacture of final product but were traded as such in the open market - Rule 3(1) and 2(k)(l) of Cenvat Credit Rules - Held that: - appellant have availed CENVAT credit in respect of plastic closure imported by them and the said goods were sold after testing and inspection - If excise duty was paid on such goods at the time of clearance no demand exist. Though the CENVAT Credit Rules, 2004 provided for eligibility of Cenvat credit in respect of input used in or in relation to the manufacture of final product but Rule 16 also provides Cenvat credit even in respect of duty paid finished goods subject to condition that the said finished goods on which Cenvat credit was availed should be cleared on payment of excise duty i.e. in case of the said finished goods undergone manufacturing process in terms of Section 2(F) Central Excise Act, assesse is required to pay duty on the transaction value, and in other case where the goods does not undergo process which amounts to manufacture, then excise duty equal to Cenvat credit availed on such goods should be paid - In the present case as per the claim of the appellant which was not disputed by the lower authorities that appellant have paid the excise duty at the time of sale of such imported plastic closure. It is found that appellant have paid duty equivalent to the Cenvat credit availed, no further demand would exist. Both the lower authorities have not verified the details of duty payments on the sale of the bought out goods on which credit was taken therefore this aspect needs to be verified - appeal allowed by way of remand.
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