TMI Blog2013 (12) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... ed products and Central Excise duty was paid on such assembled goods on its transaction value - the Central Excise duty so paid was always higher than the CENVAT credit on inputs utilized - Central Excise duty on transaction value was paid on the imported inputs cleared ‘as such’ from the factory and that such duty was also higher than the CENVAT credit taken of CVD. The amount of duty paid by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The said amount of duty represents the CENVAT credit taken by the appellant on the inputs used in a process claimed to be manufacture of various high precision cutting tools during the material period (April, 2005 to January, 2010). After perusing the records and hearing both sides, we find that, during the above period, the appellant imported screws, inserts and cartridges from Germany (group co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the items rather than by reversal of CENVAT credit of CVD. The learned counsel submits that the duty paid on transaction value is always higher than the CENVAT credit. The learned Commissioner (AR) submits that the appellant was virtually importing screws, inserts and cartridges and clearing the same as such to their customers, thereby performing a trading activity. The very same items when clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n admitted fact that Central Excise duty on transaction value was paid on the imported inputs cleared as such from the factory and that such duty was also higher than the CENVAT credit taken of CVD. (d) There are decisions to the effect that CENVAT/MODVAT credit could not be denied on inputs where equal or higher amount was reversed at the time of its clearance as such . Most of the decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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