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2024 (1) TMI 817 - AT - Central ExciseProcess amounting to manufacture - affixing the MRP on the containers of Adhesive solution falling under Chapter 35 of Central Excise Tariff Act, 1944 - Cenvat Credit for making adjustment against the Excise Duty on the manufactured goods - HELD THAT:- The appellant treated their activity of repacking and resale of the goods as trading activity. Accordingly, under the dealer registration, they have issued dealer invoice in respect of the Cenvat Credit of CVD paid in respect of imported goods, later on when the department raised contention that this re-packing is amount to manufacture appellant admittedly paid an amount over and above the Cenvat Credit. The issue to be decided in the revenue’s appeal is that whether the appellant is entitled for Cenvat Credit for making adjustment against the Excise Duty on the manufactured goods. In the present case on the same transaction the department has demanded the Excise Duty considering as manufactured goods. Therefore, obviously whatever Cenvat Credit involved with the goods needs to be adjusted against the total duty liability. The contention of the revenue is that since they have already passed credit of CVD through dealer invoice the same cannot be adjusted is absolutely incorrect for the reason that the CVD was not Passed on twice. It is the same CVD was passed on. Therefore, the contention of the revenue in this regard absolutely absurd and not acceptable. From the decision in COMMISSIONER OF CENTRAL EXCISE & ST, BHAVNAGAR VERSUS GUJARAT HEAVY CHEMICALS LIMITED [2023 (5) TMI 188 - CESTAT AHMEDABAD], it can be seen that the facts are absolutely identical that in respect of the consignment sold as trading activity by passing on the credit under dealer invoice. Subsequently, when the department has sought to consider the activity as manufacture and demanded Excise Duty Cenvat Credit was allowed to be adjusted. The impugned order is upheld - Appeal is dismissed.
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