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2016 (12) TMI 835 - CESTAT NEW DELHIReversal of CENVAT credit - packing and clearing the goods received from own unit situated separately after adding 15% overhead on the value - instrument panel, extension chamber, cubical transducer, junction box etc - the goods were treated as inputs by assessee and CENVAT credit was availed on the same - Whether the packing of said inputs would amount to manufacture? - the goods were cleared on payment of duty, is the reversal of credit now demanded is justified? Held that: - even though the activity undertaken by the appellant after receipt of the goods was only mere packing, it is not disputed that the goods have been cleared from the appellants factory on payment of duty. It is also not in dispute that the duty paid at the time of clearance is more than the cenvat credit taken. Further, it was the finding of the Commissioner that when the process is held to be not manufacture, then the duty paid on the final product should be treated as reversal of the ineligible credit on the inputs and the assessee cannot be called upon to pay the credit. Thus I find that when credit is proposed to be denied by holding that the process in which goods on which credit has been taken were used, did not amount to manufacture, duty paid by the assessee by utilising the credit on such goods is to be treated as reversed/ paid back. I find the issue is issue is Revenue neutral. Appeal dismissed - reversal of credit not required - decided against Revenue.
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