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2021 (9) TMI 771 - AT - Central ExciseCENVAT Credit - inputs - V belts - procured 'pulleys' - denial on the ground that appellants were not manufacturing any goods and the activity that took place was trading of goods - HELD THAT:- It is not disputed that the appellant has cleared the final product viz. Belt & Accessories (Pulleys and V Belts) after payment of excise duty. When the appellant has discharged the excise duty on final product then the department cannot disallow credit alleging that there is no process of manufacture. In case of any doubt, the department ought to have intimated the appellant before discharge of excise duty. In the present case payment of duty on the inputs is not disputed. The 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] held that when the duty has been paid on the finished products then the availment of the credit of duty paid on inputs cannot be faulted. The demand cannot sustain - Appeal allowed - decided in favor of appellant.
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