Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 301 - AT - Central ExciseCredit of duty on goods brought to the factory - Rule 16 of Central Excise Rule 2002 - activity amounting to manufacture or not? - Held that:- There is no dispute of the facts that the appellant have purchased layflat tubing, shrink caps and waste packing bags on payment of Excise duty and certain activities have been carried out after such activities they have cleared the goods on payment of duty. This transaction is squarely covered under Rule 16 of Central Excise Rule 2002 - an assessee is permitted to bring the bought out goods and avail CENVAT credit on it and after any process can clear on payment of duty. In case the activity amounts to manufacture the assessee is required to pay duty on its transaction value and if the activity does not amount to manufacture, the excise duty so payable should be equal to the CENVAT credit on the bought out goods. This provision clearly makes it clear that even if the activity does not amount to manufacture, the CENVAT credit is admissible. There is no case of the department that the appellant have paid duty less than the CENVAT Credit - in terms of Rule 16, of Central Excise Rules, 2002 CENVAT credit is admissible. Appeal allowed - decided in favor of appellant.
|