2019 (11) TMI 1262 - AT - Central Excise

Recovery of CENVAT Credit - credit on sulphur lump - denial of credit on the ground that the process carried out by the Appellant on sulphur lump does not result into manufacture within the definition of manufacture as prescribed under Section 2(f) of Central Excise Act, 1944 - HELD THAT:- Undisputedly the appellant had discharged appropriate Central Excise duty after undertaking the process of repacking, relabeling of the inputs on which credit has been availed by them. Thus, it is incorrect to allege that the appellants are not eligible to avail CENVAT Credit on inputs that has been utilized in the manufacture (repacking, relabeling etc.) of resultant product, on which appropriate excise duty was paid and accepted by the Revenue.

The issue is no more res integra and covered by the judgment of Hon'ble Bombay High Court in the case of THE COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS AJINKYA ENTERPRISES [2012 (7) TMI 141 - BOMBAY HIGH COURT] where it was held that once the duty on final products has been accepted by the department, CENVAT credit availed need not be reversed even if the activity docs not amount to manufacture.

Appeal allowed - decided in favor of appellant.