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2023 (9) TMI 354 - CESTAT MUMBAI
CENVAT Credit - inputs - manufacture took place or not - HELD THAT:- Even if the goods cleared by the appellant have not undergone manufacture, the consequent non-excisability would render the credit as not having been availed. It would, therefore, appear that the issue in dispute is limited to taking of credit on goods that are not ‘inputs’ as defined in rule 2 of CENVAT Credit Rules, 2004.
In re Ajinkya Enterprises [2012 (7) TMI 141 - BOMBAY HIGH COURT], the Hon’ble High Court of Bombay has held that in the present case, the assessment on decoiled HR/CR coils cleared from the factory of the assessee on payment of duty has neither been reversed nor it is held that the assessee is entitled to refund of duty paid at the time of clearing the decoiled HR/CR coils.
In effect, therefore, the utilization of credit for cleared products is tantamount to reversal and, hence, recovery of such credit is an exercise in superfluity. These decisions were not available with the adjudicating authority then and has settled the law on recovery thereupon. Learned Authorized Representative has suggested that actual availment and corresponding substantive reversal need to be verified.
Matter remanded back to the original authority for such verification and to limit recovery, if any, only to such credit as is in excess of that availed on procurement of the three products.