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2016 (8) TMI 295 - CESTAT BANGALORE

2016 (8) TMI 295 - CESTAT BANGALORE - TMI - Cenvat Credit - payment of duty where processing is not amounting to manufacture - they had cleared the fabrics cut to required sizes - payment of duty which was not less than cenvat credit taken on the fabrics - whether amount to reversal of credit or not - Held that:- the case is squarely covered by various judgments of the Tribunal. The demand raised by the Revenue does not survive because the credit taken by the appellant was reversed by paying dut .....

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favour of appellant with consequential relief. - E/25793 & 25794/2013-SM - Final Order Nos. 20613 - 20614/ 2016 - Dated:- 5-8-2016 - Shri S. S. Garg, Judicial Member For the Appellant : Shri M.S. Nagaraj, Advocate For the Respondent : Shri Pakshi Rajan, AR ORDER Per S. S. Garg The present appeals are directed against the common Orders-in-Appeal No. 435-436/2012 dated 14.12.2012 vide which the Commissioner (Appeals) has rejected the appeal of the appellant by upholding the Order-in-Original. Sinc .....

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alleging that the assessee had taken cenvat credit of ₹ 27,557/- (Rupees Twenty Seven Thousand Five Hundred and Fifty Seven only) and ₹ 1,76,124/- (Rupees One Lakh Seventy Six Thousand One Hundred and Twenty Four only) in May 2009 and from June 2009 to March 2010 respectively on fabrics received from the other manufacturers. Further allegation in the show-cause notice is that since the appellant was buying the finished goods and clearing the same to the customers without any further .....

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were cut to the required size as per the customers requirement and cleared under invoices on payment of cenvat were submitted before the lower authorities. 2. The Superintendent of Central Excise (Adjn.) Bangalore III Division passed Order-in-Original dated 20.09.2011 in respect of show-cause notice 159/2010 and the Assistant Commissioner of Central Excise passed the Order-in-Original 24/2011 dated 29.08.2011 confirming the demand of cenvat credit of ₹ 27,557/- (Rupees Twenty Seven Thousa .....

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Central Excise Rules 2002 are not applicable in the instant case. On aggrieved by the said impugned order, the appellant filed the present appeals. 3. The learned counsel for the appellant submitted that the appellants have taken cenvat credit of duty paid on jumbo rolls of HDPE/PP fabrics supplied by other manufacturer in accordance with the provisions of Rule 16 of the Central Excise Rules 2002. The appellants have cut the jumbo rolls of HDPE/PP fabrics to the required size as per the requirem .....

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eceived in the factory in terms of sub rule (1) and the appellants have complied with Rule 16 of Central Excise Rules 2002. He further submitted that Rule 3(5) of the Cenvat Credit Rules 2004 permits removal of cenvat credit availed inputs as such on payment of an amount equal to the credit taken. The payment of duty on clearance of HDPE fabrics is payment of an amount equal to cenvat taken on inputs in terms of Rule 3(5) of the Cenvat Credit Rules 2004. He also submitted that once the demand of .....

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he said Rules provides for return of any goods, on which duty has been paid at the time of removal, to the factory for being re-made, refined, re-conditioned or for any other reason. In such cases, the assessee shall state the particulars of such return in his records and shall be entitled to have cenvat credit of the duty paid as if such goods are received as inputs under the Cenvat Credit Rules, 2002 and utilize this credit according to the said rules. Receipt of duty paid goods in the factory .....

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he Board has decided that the word return in Rule 16 referred above need not be interpreted strictly. Receipt of duty paid goods in the factory of manufacturer for the purpose specified, in said rule may be allowed even in respect of goods not manufactured by them subject to adherence of other conditions prescribed therein. 3.2. Further the appellants placed reliance on the following decisions: (i) CCE, Ahmedabad Vs. Tapsheel Enterprises 2007 (216) ELT 284 (T) (ii) Venkateshwara Company Vs. CCE, .....

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l relied upon the following decisions: (i) Orissa Industries Ltd. Vs. CCE, Bubhaneswar 2007 (217) ELT 116 (T) (ii) Shival Udyog (I) Ltd. Vs. CCE, Raipur 2006 (204) ELT 94 (T) (iii) Super Forgings & Steels Ltd. Vs. CCE, Chennai 2007 (217) ELT 559 (T) (iv) Sona Koyo Steering Systems Ltd. 2007 (208) ELT 211 (T) (v) Head Shrink Technologies Limited Vs. CCE, Mumbai 2007 (220) ELT 437 (T) (vi) Ashok Enterprises Vs. CCE, Chennai 2008 (221) ELT 586 (T) (vii) Shree Textiles Vs. CCE, Jaipur 2010 (250) .....

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