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2019 (2) TMI 1225 - AT - Central ExciseCENVAT credit - imported input cleared as such - process of manufacture taken place or not - the case of the department is that since the imported input sold as such on which credit was taken, the appellant is require to reverse the actual cenvat credit - extended period of limitation - Held that:- It is clear that re-packing/re-labelling activity which was carried out by the appellant alone will not amount to manufacture but along with re-packing/re-labelling there should be an activity i.e. conversion from bulk pack to retail pack to render the product as manufactured goods. This issue has been settled in the case of M/s Amritlal Chemaux Ltd [2015 (5) TMI 700 - SUPREME COURT] wherein the identical Chapter Note has been dealt with and the Hon’ble Supreme Court held that the activity of re-packing/re-labelling alone does not amount to manufacture - Accordingly, the appellant’s activity being only re-packing/re-labelling of imported goods does not amount to manufacture, therefore, the clearance of such goods shall be correctly treated as removal of input as such. Extended period of limitation - Held that:- It is not only the appellant but also department throughout in the case of M/s Amritlal Chemaux Ltd and even in the case of CCE, Mumbai Vs. Johnson & Johnson Ltd. [2005 (9) TMI 85 - SUPREME COURT OF INDIA] taken a stand that the activity similar to the activity carried out by the appellant is amount to manufacture. The issue was finally settled by the Hon’ble Supreme Court, therefore, when the department itself was of the view that the activity of re-packing/re-labelling alone is amount to manufacture - The same bonafide belief was entertained by the appellant which cannot be construed as malafide intention to evade the payment of duty, therefore, the demand for the extended period cannot be raised. In the present case, demand of the period 2006-07 to 2007-08 was raised by SCN dated 16.02.2009, therefore, the entire demand is under extended period, hence the same will not sustain on the ground of limitation - appeal allowed on the ground of limitation.
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