2017 (7) TMI 478

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..... AT credit - Held that: - Rule 16 stipulates that even though the activity does not amount to manufacture but if the assessee cleared the goods on payment of duty which is equal to Cenvat Credit, the cenvat credit on the bought out duty paid goods is admissible, as if the same is input - the appellant though engaged in the manufacture of Nuts and Bolts have also bought out duty paid Nuts and Bolts .....

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..... dit availed on the bought out Nuts and Bolts. The department s case is that since the activity of bringing nuts and bolts cleaning, testing and buttoning does not amount to manufacture, the appellant is not entitled for the cenvat credit. 2. Shri P. V. Sadavarte, Ld. Counsel appearing on behalf of the appellant submits that the activity by the appellant is squarely covered by Rule 16 of Central .....

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..... i N. N. Prabhudesai, Ld. Superintendent (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that the cenvat credit is admissible only to the manufacturer and not for trading purpose. It is necessary that the manufacturer should undertake the manufacturing activity in order to avail the cenvat credit. Since in the facts of the present case, the appell .....

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..... vat credit. In this fact the credit is admissible in view of the Rule 16 which reads as under: Rule 16 of Credit of duty on goods brought to the factory, - (1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in h .....

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..... oves 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 reason and may remove the goods subsequently subject to such conditions as may be specified by the Commissioner. From the above Rule it can be seen that even though the activity does no .....

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