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2023 (8) TMI 600 - AT - Central ExciseCENVAT Credit - imported/locally procured inputs when subjected to the processes by the appellant, disputed not to be a process of manufacture by the Revenue - HELD THAT:- In the present case, the appellants are engaged in the manufacture of various high precision tools, and also import certain parts used as inputs from their group companies located in Germany, Sweden and Italy. The tools were customised and sold by the appellant on payment of appropriate duty of excise on its transaction value, which was more than the credit availed on the inputs. The Revenue disputed the processes undertaken on the imported items alleging the same do not result into manufacture of a new item different from the inputs; hence the activity undertaken by the appellant purely in the nature of trading; therefore cenvat credit availed on the inputs cannot be admissible. In THE COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS AJINKYA ENTERPRISES [2012 (7) TMI 141 - BOMBAY HIGH COURT], the Bombay High Court taking note of the arguments of the Revenue more or less in the same line observed Once the duty on final products has been accepted by the department, CENVAT credit availed need not be reversed even if the activity does not amount to manufacture. There are no merit in the impugned orders - the impugned orders are set aside and the appeals are allowed.
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