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M/s. Exide Industries Ltd. Versus C.C.E & S.T. Delhi-III

2016 (2) TMI 591 - CESTAT NEW DELHI

Cenvat Credit on semi finished / unformed batteries denied - Whether the activity undertaken by the appellant on amounts to manufacture or not? - Held that:- Semi finished / incomplete batteries received by the appellant and by the process undertaken by the appellant have become complete batteries / marketable. Therefore, the activity undertaken by the appellant is squarely covered by the section note 6 of Section 16 of Tariff Act 1985. Therefore, we hold that activity undertaken by the appellan .....

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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(DB) - Final Order No. 53077/2015-EX(DB) - Dated:- 30-9-2015 - SHRI ASHOK JINDAL, MEMBER (JUDICIAL) AND SHRI B. RAVICHANDRAN, MEMB .....

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mulators they poured sulphuric acid in the batteries and charged upto specified gravity and cleared them as final product on payment of duty. The case of the Revenue is that the appellant is receiving batteries and selling them as batteries only. Therefore, the activity undertaken by the appellant does not amount to manufacture. Consequently, the appellant is not entitled to take Cenvat Credit on semi finished batteries received by them from sister units. Therefore, proceedings were initiated ag .....

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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 cas .....

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the impugned order and submits that as the activity of the appellant does not amount to manufacture as the character and classification of the impugned goods does not change by the activity undertaken by the appellant. Therefore, Cenvat Credit is rightly denied by the Adjudicating Authority. 5. Heard both the sides. Considered the submission. 6. In this case the short issue before us is: a) Whether the activity undertaken by the appellant on amounts to manufacture or not. Consequently, the appe .....

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any leakage or not, and thereafter sealing the 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 u .....

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