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Bhambra Fabricators Versus C.C.E., Delhi-IV

2015 (10) TMI 904 - CESTAT NEW DELHI

Disallowance of Cenvat credit - Bright bars - Manufacturing activity - Held that:- The credit on Bright bars used by the appellant for the manufacture of finished goods, is sought to be denied on the ground that Bright bars are not a commodity subject to excise duty as no process of manufacture is involved in the transformation of round bars into Bright bars. The short question involved is whether the appellants are entitled to credit on the duty paid on Bright bars used as inputs. According to .....

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Rules, for availing credit. The benefit of credit is sought to be denied on the ground that on the end of the supplier these goods were not excisable goods. - If the supplier who supplied the goods is allowed credit even though the finished product is not an excisable commodity I cannot find any reason to deny the credit to the appellants who have received the goods by paying the duty. In CCE, Hyderabad vs. Deepthi Formulations Ltd [2013 (3) TMI 547 - CESTAT BANGALORE] the Tribunal has taken th .....

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g the disallowance of Cenvat credit on bright bars used as inputs for the manufacture of Motor Vehicle Parts. 2. The appellants are engaged in the manufacture of goods falling under Chapter Heading 8708 & 8415 of the 1st schedule of the Central Excise Tariff Act, 1985. They are also availing Cenvat credit. It was observed that the appellant had wrongly availed Cenvat credit on Steel Wires/Bright Bars, as the Hon ble Supreme Court in the case of M/s Vee Kayan Industries reported in 1996 (83 .....

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it on Bright bars used by the appellant for the manufacture of finished goods, is sought to be denied on the ground that Bright bars are not a commodity subject to excise duty as no process of manufacture is involved in the transformation of round bars into Bright bars. The short question involved is whether the appellants are entitled to credit on the duty paid on Bright bars used as inputs. According to Department the manufacturer who supplied the bright bars was not liable to pay duty on thes .....

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t on the end of the supplier these goods were not excisable goods. 4. Interestingly, although the Apex Court in its judgment dated 20.09.1994 in CCE, Chandigarh Vs. Vee Kayan Industries, 1996 (83) ELT 262 (SC) held that the processing of round bars into Bright bars would not amount to manufacture, the Department by Trade Notice No. 18/2003 dated 14/08/2003 had clarified that the process of making bright bars from wire rods amounts to manufacture. Duty was being collected upon bright bars and cre .....

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