TMI Blog2016 (8) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... oted that the appellants have not taken any CENVAT credit for any of inputs including the input of packing material (printed laminated /metalised film and pouches) in respect of manufacture of Instant Food Mixes, ready to eat food, etc. Commissioner of Central Excise, when deciding the SCN issued to the appellants has not rightly appreciated the facts on the ground. There has been misconstruction on the part of Commissioner deciding the SCN notice, when he wrongly linked the CENVAT credit taken on the inputs for manufacture of packing material (printed laminated /metalized film and pouches), which actually is a different product altogether and has no direct link with the product, instant food mixes, etc. It is to be noted that the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent buyers, would amount to utilization of CENVAT credit on inputs used in the manufacture of food products. Therefore, proceedings were initiated to deny the benefit of exemption of duty under the Notification No. 01/2011-CE dated 01/03/2011. As a result of the proceedings, the differential duty demand of ₹ 4,96,22,609/- with interest was confirmed for the period from March 2011 to February 2012; penalty of ₹ 10 lakhs was also imposed on the appellants. 1.2 The appellants were granted waiver of pre-deposit and Stay against recovery by this Tribunal vide Misc. Order No. 20808/2014 dated 24.03.2014. 2 The appellants and the respondents have been heard in detail and their submissions have carefully been examined. 3 W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of inputs including the input of packing material (printed laminated /metalised film and pouches) in respect of manufacture of Instant Food Mixes, ready to eat food, etc. 3.3 The appellants also cited the decision of Chandrapur Magnet Wires Pvt. Ltd. vs. CCE, Nagpur reported in 1996 (81) E.L.T. 3 (S.C.), which makes the position clear that even when a manufacturer has taken CENVAT credit for certain inputs and they reverse the said credit, they would be entitled to the benefit of Notification. Hon ble Supreme Court held that if credit has been taken but the duty is debited subsequently, benefit of exemption under Notification containing condition regarding non-availment of Modvat credit cannot be denied. 3.4 This Tribunal s d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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