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2019 (10) TMI 577 - AT - Central ExciseReversal of Cenvat credit - activity of refilling/relabeling of ink containers - Process not amounting to manufacture - appellant imported ink in bulk and procured the container form third parties in open market. The ink was procured and refilled in these containers and labelled and cleared as such - extended period of limitation - HELD THAT:- No demand has been raised for printing ink reservoir with sump chip in computation of demand. The imported ink container, the appellant has availed credit of CVD paid by them on the premise that the activity of refilling/relabeling. As per Chapter Note 7 to Chapter 32, the activity undertaken by the appellant does not amount to manufacture. Therefore, the appellant is not entitled to avail credit of CVD paid by them at time of import. Hon’ble High Court of Bombay in the case of THE COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS AJINKYA ENTERPRISES [2012 (7) TMI 141 - BOMBAY HIGH COURT], by upholding the finding of this Tribunal that if the activity does not amount to manufacture and the goods have been cleared on payment of duty, in such case, the duty paid by the assessee which has been accepted by the department and more than the credit availed. In that circumstance, the duty paid by the assessee shall amount to reversal of credit and the assessee is not required to reverse the credit. Admittedly in this case, the appellant cleared the said imported goods after refilling on payment of duty. Therefore, if the activity does not amount to manufacture, in that case, the duty paid by the appellant shall amount to reversal of credit. Therefore, the appellant is not required to reverse the credit of CVD availed by the appellant at the time of import - Demand set aside - penalty also set aside. Appeal allowed - decided in favor of appellant.
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