TMI Blog2014 (7) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... is alleged that the activity of de-coiling, cutting, slitting, cleaning, etc. does not amount to manufacture whereas on the other hand, in para 17 of the show cause notice it is observed that the average value of the inputs in question i.e., GP coils was ₹ 35,779/- PMT and slit coils was ₹ 38,609/- PMT whereas the average assessable value of the GP coils sheets and cut to length sheets was ₹ 38,015/- PMT and ₹ 38,763/- PMT respectively. It is further observed that the appellant cleared the goods in question after value addition on the inputs and also observed that the credit of input was availed at rate less than the duty rate at which the final products were cleared by the appellant. Thus, on the facts of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 of the Central Excise Rules, 2002. The appellant is also availing the benefit of CENVAT credit on inputs, input services and capital goods which are used in or in relation to the manufacture of excisable goods as visualized under Rule 2(a), 2(k) and 2(l) read with Rule 3 of the CENVAT Credit Rules, 2004. All the inputs are received under the cover of appropriate duty paying documents for which appropriate CENVAT account is stated to be maintained and CENVAT credit returns filed periodically. Some of the inputs used by the appellant are GP coils, Galvanised coils, CR/HR coils, aluminium coils, paint and other pre-treatment chemicals. 3. It is stated that in the factory of the appellant they have four lines of production. One line is fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other activity like de-greasing, cleaning, etc. did not amount to manufacture and amounted to removal of inputs as such and accordingly the CENVAT credit availed was proposed to be disallowed for ₹ 3,64,02,946/- under Rule 14 of CENVAT Credit Rules, 2004. Similar show cause notice was also issued dated 01/11/2011 for similar activity for the month of October 2010 and January 2011 asking to show cause as to why CENVAT credit of ₹ 14,41,390/- be disallowed. The appellant appeared and contested the show cause notice but the demands were confirmed vide Order-in-Original dated 31/07/2012 along with equal amount of penalty under Rule 15(2) of CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise At, 1944. Being aggri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellant is registered with the Central Excise department for the activity of manufacturing colour sheets which includes activity of cutting, slitting along with cleaning, de-greasing, etc. of the sheets or raw material. 5(b) The next ground raised is that the appellant have not indulged in any new activity as the activity is a common activity and incidental in manufacturing of colour sheets, which are also cut to size, on finishing for making them marketable. Only because the clearance in question are not colour sheets but undergone other processes including de-greasing, cleaning, etc. has resulted into value addition which is evident from the fact that the clearance of the goods in question are at higher rate of duty. 5(c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to refund of that duty at the time of clearance of the de-coiled HR/CR coils. Once duty on final products have been accepted by the department CENVAT credit availed need not be reversed even if the activity does not amount to manufacture. Reliance was placed by the Bombay High Court on a similar view taken by the Gujarat High Court in Commissioner of Central Excise vs. Creative Enterprises 2009 (235) ELT 785. 6. The learned DR supports the order-in-original, drawing particular attention to par 56 of the Order-in-Original wherein the adjudicating authority has observed that the appellant was holding Central Excise registration and as the goods were cleared without any manufacturing activity then the same would be covered under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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