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2024 (10) TMI 815 - AT - Central ExciseProcess amounting to manufacture or not - Recovery of CENVAT Credit with interest allegedly taken erroneously without undertaking any manufacturing process alongwith direction for payment of equal penalty under Rule 14 15(2) of the CENVAT Credit Rules 2004 read with Section 11A(5) 11AA and 11AC of the Central Excise Act 1944 - HELD THAT - It has to be taken on record that w.e.f. 01.03.2003 certain goods undergoing packing repacking labelling relabeling were to be considered as manufacture even if it is not brought on record as to if the alleged product is goods specified in third schedule of the Central Excise Tariff Act and even if it is accepted that the process undertaken by the Appellant before submitting the products to clearance was not to be considered as manufacture still Appellant had taken the stand even before the Adjudicating Authority that in such an event duty was refundable to it which is admittedly much higher than the CENVAT Credit availed during the said period that was held by the Respondent-Department as inadmissible. Without going into the intricacy of the process of manufacture or the interpretation of provision of law dealing with such manufacturing process in view of the settled position of law that has been reiterated by the Hon ble Bombay High Court in the case of Ajinkya Enterprise 2012 (7) TMI 141 - BOMBAY HIGH COURT that when duty is accepted by the Department against clearance of a manufactured product CENVAT Credit availed by the manufacturer can t be denied to it. The order passed by the Commissioner of Central Excise (Appeals) Mumbai-II is hereby set aside with consequential relief of refund of credit that was reversed by the Appellant with applicable interest as per law and the Respondent-Department is directed to pay the same within two months of receipt of this order - Appeal allowed.
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