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2023 (9) TMI 408 - AT - Central ExciseIrregular availment of credit on MS plates - Process amounting to manufacture - processes undertaken by the appellant on MS plates - violation of Rule3(1) read with Rule 2(k) of the Cenvat Credit Rules 2004 - HELD THAT:- It is a settled position in law that if Cenvat Credit is availed on goods (inputs) that are subjected to certain processes, that do not amount to manufacture, and if such goods are cleared on payment of excise duty, then there is no requirement for reversal of Cenvat Credit availed on the inputs. It is also the appellants contention that even if it is assumed that the processes undertaken viz cleaning, cutting and drilling of MS plates do not amount to manufacture, Cenvat Credit on the inputs is essentially available to them. The fact of clearance of such goods to their sister unit on payment of excise duty is evident from records - it is also noted that the amount of duty paid by the appellant is higher than the amount of credit availed. The Hon’ble Bombay High Court in the case of THE COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS AJINKYA ENTERPRISES [2012 (7) TMI 141 - BOMBAY HIGH COURT], had upheld the Tribunal order, wherein an identical contention in the context of decoiled HR/CR coils cut into specific size was concerned with and the Tribunal had upheld the availment of CENVAT credit on HR/CR coils and its utilization for payment of duty on decoiled HR/CR coils cleared. As the question of law as in the impugned appeal is no more res integra and has been settled, by the decision of the Hon’ble Gujarat High Court, in the case of COMMISSIONER OF CENTRAL EX. & CUS., SURAT-III VERSUS CREATIVE ENTERPRISES [2008 (7) TMI 311 - GUJARAT HIGH COURT], there can be no question of levy of duty and if duty is levied, the Cenvat Credit cannot be denied to the manufacturer. There is no merit in the adjudication order passed by the learned Commissioner and it being bereft of merit needs to be set aside - Impugned order set aside - appeal allowed.
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