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2009 (7) TMI 646 - AT - Central ExciseDemand- The respondents are engaged in the processing of marble slabs. On 18-9-2003 Hon’ble Supreme Court in the case of Aman Marble Industries (P) Ltd., held that cutting of marble blocks into slabs does not amount to manufacture. A show cause notice dated 19-10-2004 was issued proposing to disallow and to recover the Cenvat credit amounting to Rs. 1,75,481/- under Rule 12 of Cenvat Credit Rules, 2002. It has been alleged that the amount of Rs. 27,445/- was collected by the respondents from the customers as central excise duty by debiting from Cenvat account after the decision of the Hon’ble Supreme Court is liable to be recovered in cash under Section 11D of the Central Excise Act, 1944. Original authority disallowed the credit of Rs. 1,315/-. He also appropriated the amount of Rs. 27,445/- debited by the respondents on the goods exported in Government account. He further dropped the demand of interest. A penalty of Rs. 500/- was imposed under Rule 15 of Cenvat Credit Rules, 2004. Revenue filed appeal before the Commissioner (Appeals) which was rejected. Hence, Revenue filed this appeal. In the light of the various decisions held that- I find that the respondents used capital goods prior to 18-9-2003 and Cenvat credit lying in balance on 18-9-2003 is not disallowable and would not lapse. In view of the above discussion, I do not find any reason to interfere with the order of the Commissioner (Appeals). Accordingly, appeal filed by the Revenue is rejected.
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