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2022 (8) TMI 984 - AT - Central ExciseProcess amounting to manufacture - wrongful availment of MODVAT/CENVAT Credit on CRM and Handling Services used for manufacturing CRMB and subsequently utilization of the same for payment of Central Excise duty - HELD THAT:- The Hon’ble Karnataka High Court in the case of THE COMMISSIONER OF CENTRAL EXCISE BANGALORE-V VERSUS M/S. VISHAL PRECISION STEEL TUBES AND STRIPS PVT. LTD. [2017 (3) TMI 1287 - KARNATAKA HIGH COURT] has held that when the Cenvat credit availed on the inputs stand utilized for payment of duty on the final product, there would be no requirement of reversal of the said credit even if the activity undertaken by the assessee does not amount to manufacture. It is an undisputed position that the final product is treated as dutiable and duty is paid by the assessee. When once duty is paid by the assessee treating the activity as manufacturing activity by the Department, Cenvat credit is available and there is no question of denial of Cenvat credit. The impugned order is not sustainable and is liable to be set aside - Appeal allowed - decided in favor of appellant.
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