TMI Blog2013 (1) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... illary for the completion of the manufactures of the final product. As decided in assessee's own case [2013 (1) TMI 554 - ALLAHABAD HIGH COURT] the paints used on the floor of the production hall to make it dust free and fire retardant, was used for manufacture of final products. As such, the Cenvat Credit was admissible on it - in favour of assessee. - CENTRAL EXCISE APPEAL No. - 321 of 2005 - - - Dated:- 10-1-2013 - R.K. AGRAWAL, AND RAM SURAT RAM (MAURYA), JJ. Petitioner Counsel: - K.S. Sinha,K.C. Sinha, B.K.S. Raghuvanshi Respondent Counsel: - M.P. Devnath,Nishant Agarwal (Delivered by Hon'ble Ram Surat Ram (Maurya), J 1. Heard Sri B.K.S. Raghuvanshi for the appellant and Sri Nishant Mishra for the respondent. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed notice dated 01.08.2002 to the respondent that the aforesaid materials were not used for manufacture of the final product, as such, the assessee was not entitled to the benefit under the CENVAT Credit Rules, 2001 on these materials. It is alleged that the assessee could not submit his reply within the time allowed in the notice as such the Assistant Commissioner, Central Excise, Division IV, Ghaziabad by order dated 14.2.2003 held that the aforesaid materials used by the assessee were the building materials and not required to be used in manufacturing/processing, directly or indirectly for manufacture of finished goods and as such Cenvat Credit facility availed on these materials, was inadmissible. On this finding, he disallowed the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of the final produce. Cement and paint are not used in manufacture of final product rather these materials were used for the floor of production hall. As such the respondent was not entitled for the Cenvat Credit facility on these items. The counsel for respondent informed that the appellant had filed Central Excise Appeal No. 181 of 2006 in the matter of the respondent, raising same substantial questions of law. This Court by judgment dated 20.09.2012 held that the finding of the Tribunal that the paints used on the floor of the production hall to make it dust free and fire retardant, was used for manufacture of final products. As such, the Cenvat Credit was admissible on it. The judgment of this court dated 20.9.2012 passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table to the consumer; and the word manufacture shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account. 9. The Supreme Court in Flex Engg. Ltd. v. CCE, (2012) 5 SCC 609 held as follows;- It is trite to state that manufacture takes place when the raw materials undergo a series of changes and transformation that result in the formation of a commercially distinct commodity having a different name, character and use. It is equally well settled that physical presence of an input in the final finished excisable goods is not a prerequisite for claiming MODVAT credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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