TMI Blog2016 (2) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... ries received from their sister unit to do the process making them marketable in complete condition. The appellant has succeeded on the issue that whether their activity amounts to manufacture or not. We also hold that as per the decision of Hon'ble High Court in the case of Ajinkya Enterprises (2012 (7) TMI 141 - BOMBAY HIGH COURT ) wherein it has been held that if activity does not amount to manufacture, the goods cleared on payment of duty shall amount to reversal of credit. In that situation also appellant is not required to reverse Cenvat Credit. In these circumstances, the appellant has correctly taken the Cenvat Credit and we do not find any merit in the impugned order. - Decided in favour of assessee - Appeal No. E/3188/2012-EX( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic filling in the batteries received in semi finished conditions. Thereafter, they do jar formation process that is put two plate inserted into container with top lid closed and sealed and the complete batteries is sold by them on payment of duty. Therefore, the activity undertaken by the appellant is an activity amounts to manufacture as they have made their batteries marketable as per section note 6 of section 16 of the Central Excise Tariff Act 1985. Therefore, the appellant is entitled to take Cenvat Credit on these batteries received in semi finished condition. In alternate he submits that if there activity does not amount to manufacture, in that case also, the appellant has cleared these batteries on payment of duty which is higher th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same and sold on payment of duty. 8. We have seen the process undertaken by the appellant and also gone through the section note 6 of section 16 of the Central Excise Tariff Act 1985 which is reproduced here as under: In respect of goods covered by this section, conversion of an article which is incomplete or unfinished but having the essential character of the complete or finished article (including blank that is an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into a finished article or a part), into complete or finished article shall amount to manufacture . 9. Semi finished / incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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