TMI Blog2018 (3) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... redit Rules, 2004 provided for eligibility of Cenvat credit in respect of input used in or in relation to the manufacture of final product but Rule 16 also provides Cenvat credit even in respect of duty paid finished goods subject to condition that the said finished goods on which Cenvat credit was availed should be cleared on payment of excise duty i.e. in case of the said finished goods undergone manufacturing process in terms of Section 2(F) Central Excise Act, assesse is required to pay duty on the transaction value, and in other case where the goods does not undergo process which amounts to manufacture, then excise duty equal to Cenvat credit availed on such goods should be paid - In the present case as per the claim of the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on these goods is inadmissible in terms of Rule 3(1) and 2(k)(l) of Cenvat Credit Rules. Accordingly, a show cause notice was issued for denial of Cenvat Credit and recovery thereof and also proposing penalty and interest. The adjudicating authority confirmed the demand, imposed penalty and demanded interest. Being aggrieved by the Order-in-Original, appellant filed appeal before the Commissioner (appeals) which came to be rejected in toto by upholding Order-in-Original No. P1/CEX/82/ADC/2014 dated 14-10-2014 therefore appellant are before me. 2. Shri. S Narayanan, Ld. Counsel for the appellant submits that though the Cenvat credit was taken on the imported goods at the time of receipt, however while selling of the said g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the manufacture of final product and in the present case the bought out items as imported goods was neither inputs nor used in the manufacture of final product, therefore it does not qualify as input hence the Cenvat credit is not admissible. In support, he placed reliance on the following judgments: (i) Nitin Patki Vs. Commissioner of Central Excise, Thane-II 2011 (273) E.L.T. 104 (Tri.-Mumbai) (ii) KCP Ltd. Vs. Commissioner of Central Excise, Chennai 2013 (295) ELT 353 (S.C.). 4. I have carefully considered the submissions made by both sides and perused the records. 5. From the facts which is not under dispute in the present case, I find that appellant have availed Cenvat criedt in respect of plastic closure impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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 plain reading of the above rule it is clear that though the Cenvat Credit Rules, 2004 provided for eligibility of Cenvat credit in respect of input used in or in relation to the manufacture of final product but Rule 16 also provides Cenvat credit even in respect of duty paid finished goods subject to condition that the said finished goods on which Cenvat credit was availed should be cleared on payment of excise duty i. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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