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2023 (11) TMI 253 - AT - Central ExciseCENVAT Credit - denial on the ground that activity of the Appellant i.e., the process of making electronic capacitor grade metalized dielectric plastic film (MPP film), falling under Chapter 3920 2090 of the CETA, 1985, does not amount of manufacture - HELD THAT:- The issue whether the process of making MPP film amounts to manufacture or not is no longer res integra as amendment to the CETA, wherein, in Chapter Note 16 to Chapter 39, was added - under similar facts and circumstances, the Coordinate Bench of this Tribunal at Mumbai in the case of THE PAPER PRODUCTS LTD VERSUS COMMISSIONER OF CENTRAL EXCISE [2014 (3) TMI 521 - CESTAT MUMBAI] have distinguished the ruling of Hon’ble Supreme Court in the case of METLEX (I) PVT. LTD. VERSUS COMMISSIONER OF C. EX., NEW DELHI [2004 (2) TMI 387 - SUPREME COURT] and have held that under similar facts and circumstances, the process amounts to manufacture. The Coordinate Bench in Chandigarh in the case of DHRUV INDUSTRIES LTD. VERSUS CCE, DELHI-III (VICE-VERSA) [2018 (4) TMI 1492 - CESTAT CHANDIGARH] have also, under similar facts and circumstances, distinguished the ruling of Metalex (supra) and held that a new product comes into existence by use of the various raw materials viz., Poly Propylene, Polyester Films of Aluminium & Zinc, which is coated and further the process required use of capital goods/ machinery involving substantial cost and such process of manufacture takes about 36 hours. It was held that a new product comes into existence. The process of making MPP Films, capacitor grade from plain plastic film would amount to manufacturing process and the MPP classifiable under CETH 3920 2090 would be a manufactured good. Once the process is considered as manufacturing process, the credit becomes admissible. Accordingly, Appellant is entitled to Cenvat credit, which has been disallowed by the Impugned Order. Appeal allowed.
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