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TMI Blog2016 (3) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... ved in the case is that whether the Cenvat Credit is allowed on the inputs used in the manufacture of exempted goods or non dutiable goods. The respondents are procuring duty paid Polyester/BOPP Film and carrying out printing and lamination processes on the said film. Thereafter laminated films were slit to the required sizes and cleared to the customers on payment of duty. The respondent availed Cenvat Credit of duty paid on the Polyester/BOPP Film as well as other raw materials such as ink, adhesives, solvent etc. The department has proceeded to deny the Cenvat Credit on the ground that Hon'ble Supreme Court in the case of M/s. Metlex (I) Pvt. Ltd. held that laminating/metalizing of duty paid film does not amount to manufacture. In vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise, Noida 2005 (184) ELT 49 (Tri-Del) (iii) Bharat Gears Ltd. vs. Commissioner of C. Ex, Mumbai III 1996 (87) ELT 668 (Tribunal) (iv) Aask Engineers vs. Commissioner of Central Excise, Pune 1998 (97) ELT 99 (Tribunal) 4. We have carefully considered the submission made by both the sides. We find that the facts of the case is not much in dispute inasmuch as the respondent have availed the credit on inputs which was used in the process of printing and lamination processes of the Polyester/BOPP Film and this activity was held to be non manufacture. We find that Ld. Commissioner has allowed the credit on the following reasons: "(i) The present case is covered in the Tribunal's decision in the case of PSL holding Ltd. vs. CCE Rajkot 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be. Explanation - The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by the manufacturer who removes the goods. (3) If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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