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2019 (12) TMI 1122 - AT - Central ExciseReversal of CENVAT Credit - process amounting to manufacture or not - activity of cutting and slitting of Brass Strips, Phosphor Bronze Strips and Copper Strips - HELD THAT:- The appellant is engaged in the activity of cutting and slitting of Brass Strips, Phosphor Bronze Strips and Copper Strips falling under Chapter Sub-heading 7409 2100, 7409 1100 and 7409 3100 of the First Schedule of the Central Excise Tariff Act (CETA), 1985. Also, while procuring the raw materials, appellant has paid the full amount inclusive of excise duty and thereafter availed CENVAT credit of the duty paid on inputs and after converting the coils into strips by undertaking portion of slitting and cutting, clearing the final goods by utilizing the CENVAT credit availed on inputs as also in cash. The appellant had a bona fide belief that their activity amounts to manufacture and they have taken the registration by disclosing the complete facts and has been paying duty from time to time on clearance of final products which is also not disputed by the department - Appellants have also produced ER-1 returns for the disputed period wherein the details of CENVAT credit availed in respect of inputs and the duty paid on the final products are clearly shown - Further, in total, the appellants have availed CENVAT credit to the tune of ₹ 90,89,714/- during the relevant period but had paid an amount of ₹ 97,41,477/- which is more than the credit availed by them. This issue is squarely covered by the decision in ASHOK ENTERPRISES VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI [2007 (11) TMI 67 - CESTAT, CHENNAI] where it was held that even if duty wasn’t payable on final good (there being no manufacture), there was no question of recovery of credit, having been utilized towards payment of duty. Appeal allowed - decided in favor of appellant.
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