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2021 (6) TMI 783 - AT - Central ExciseCENVAT Credit - inputs - Bars and Rods which were used in annealing process - process amounting to manufacture or not - credit availed on the inputs received from sister concern, in case the supplier has paid duty - HELD THAT:- In terms of Rule 3 of Cenvat Credit Rules, 2004, that a manufacturer or producer of final products or a provider of taxable services shall be allowed to take credit of (various taxes mentioned there in suffered on the inputs) 3(i) any input or capital goods received in the factory of manufacture of final products; in terms of Rule 9 of CCR, 2004 the inputs must be accompanied by proper documents evidencing duty payment and that the same should be utilized for manufacture of final products cleared on payment of duty. It is not the case of the department that the respondents did not receive the said inputs; the same were not duty paid and the same were not utilized for manufacture of final dutiable products. Going by the facts of the case it is found that none of the essential conditions have been violated to deny the credit to the appellant. The department has not taken any steps to dishonor the duty payment made by the supplier of respondents. A show cause was issued alleging that their availment of Cenvat Credit was incorrect as the process undertaken by them did not amount to manufacture. The availment of Cenvat Credit by the respondents cannot be held to be illegal as it was found to be otherwise in order - Appeal dismissed - decided against Revenue.
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