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2024 (3) TMI 179 - AT - Central ExciseCENVAT Credit - process amounting to manufacture or not - repacking of the goods from bulk to small packs in drums/barrels to cater to the requirement of the industrial consumers - it is the case of the revenue that as no/new separate commodity emerges as a result of repacking of the said goods into smaller drums/barrels they are not eligible for availment of credit on the inputs - HELD THAT:- It is evident that the dispute as to whether the processes undertaken the appellant at their factory, amounted to manufacture or not, was well within the knowledge of the Department, as early as in 2008 and multiple queries have been shown to be made by audit. Each time the appellant have replied to such queries. Since the matter has been well within the knowledge of the Department at all times, the question of invoking of proviso to Section 11A(1) of the Central Excise Act, 1944, does not arise and the demand is entirely barred by limitation. There is no doubt that the appellant did avail Cenvat Credit on the goods received by them at their factory premises and after processing, they have paid the duty higher than the Cenvat Credit availed. It has been held by various judicial bodies that where credit has been availed of and duty paid, which was not lesser in amount than the credit availed, there is no need for initiation of proceeding against the assessee. In a catena of decisions it has been held that when final product is treated as dutiable and duty paid thereon, the facility of Cenvat Credit is open to them and there is no question of the reversal of the said credit. The Cenvat Credit availed by the appellant is not deniable. The impugned order of the lower authority is vexatious in law and fails to succeed both on the grounds of limitation as well as merits - Appeal allowed.
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