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2018 (5) TMI 479 - AT - Central ExciseCENVAT credit - inputs - denial on the ground that the processes undertaken by the appellant do not amount to manufacture - whether the demand / recovery of the credit availed by the appellant alleging that the process does not amount to manufacture is sustainable or not? - Held that: - the Board Circular No. 211/08/2005 dated 2.3.2005 has clarified that the activity does not amount to manufacture. This clarification is pursuant to the Hon’ble Delhi High Court and Hon’ble Supreme Court’s decision - In the present case, without entering into the controversy whether the activity amounts to manufacture or not, we are of the view that when Board having issued Circular No. 584/21/2001 dated 7.9.2001 clarifying that the activity amounts to manufacture and collected excise duty, cannot later turn around and deny the credit alleging that the activity is not manufacture. When the duty has been discharged by the appellant for a prolonged period, the department thereafter cannot turn around and deny the credit alleging that the process does not amount to manufacture based upon new decisions evolved. Appeal allowed - decided in favor of appellant.
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