TMI Blog2016 (3) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... vat Credit is allowed on the duty paid material treating it as inputs for the purpose of various processes and after processing if the activity is not amount to manufacture the assessee is required to clear such processed goods on payment of duty which is equal to Cenvat Credit and if the activity is amount to manufacture then excise duty is required to be paid on transaction value. As per this clear provision, even if, activity does not amount to manufacture the credit is permissible. As per the above discussion, we are of the considered view that Cenvat Credit on the inputs used in the process which does not amount to manufacture, is admissible. - Decided in favour of assessee - Appeal No. E/12/2007, E/CO-78/07 - Final Order Nos. A/85574 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals) the respondent succeeded, hence the present appeal by the Revenue. 2. Shri Sanjay Hasija, Learned Supdt. (AR) appearing on behalf of the Revenue reiterating the grounds of appeal submits that Cenvat Credit on the inputs can only be allowed if the inputs are used in the manufacture of excisable goods. In the present case, it is un disputed that the inputs were used for the activity which is not amount to manufacture hence the credit is inadmissible. He placed reliance on the following judgments. (i) Bee Am Chemicals Ltd. vs. Commissioner of C. Ex, Raigad 2014(309) ELT 183 (Tri-Mumbai) (ii) Commissioner of C. Ex, Vs. Sheetal Mercantile Pvt. Ltd. 2015(315) ELT 540 (Del.) 3. On the other hand, Shri D.R. Gadek ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of duty to the tune of ₹ 36.36 lakhs as reported by the Dy. Commissioner, Aurangabad which was not required to be paid. (iii) Credit thus was effectively reversed and revenue cannot ask for reversal of credit. (iv) Further Hon'ble Supreme Court in a case as reported in 2005 (179) ELT 276 (SC) has held that when credit amount allegedly wrongly availed is exactly equivalent to the amount of excise duty paid, the consequence is revenue neutral and demand on this count cannot be sustain. We find that besides the above finding, even if it is accepted that the activity of the respondent does not amount to manufacture, Cenvat Credit on the inputs cannot be denied as per the provisions of Rule 16 of the Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the above Rule it can be seen that under this provision Cenvat Credit is allowed on the duty paid material treating it as inputs for the purpose of various processes and after processing if the activity is not amount to manufacture the assessee is required to clear such processed goods on payment of duty which is equal to Cenvat Credit and if the activity is amount to manufacture then excise duty is required to be paid on transaction value. As per this clear provision, even if, activity does not amount to manufacture the credit is permissible. As per the above discussion, we are of the considered view that Cenvat Credit on the inputs used in the process which does not amount to manufacture, is admissible. Therefore, the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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