2018 (6) TMI 181

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..... arious types of containers through ports in bulk containers of 20 tonnes and in some cases Hydrogen Peroxide is imported in individual cans weighing 30 Kg or 65 Kg as the case may be; the said shipment of Hydrogen Peroxide accompanies by a test certificate issued by the supplier; appellant discharged proper customs duty on such imports and avails CENVAT credit of the counterveiling duty paid on imported Hydrogen Peroxide; supplies the said Hydrogen Peroxide by adhering to the technical parameters of their purchasers on payment of appropriate Central Excise duty. A show cause notice was issued to appellant proposing to demand the CENVAT credit availed on the imported Hydrogen Peroxide on the grounds that the activity undertaken by the appell .....

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..... r submission that the demands have been confirmed under rule 16 of Central Excise Rules, 2002 and is not sustainable as Rule 16 is in respect of the activity of manufacturing of finished goods cleared from the factory premises and the judgment of the Apex Court in the case of Johnson & Johnson Limited, which has been relied upon by the first appellate authority is distinguishable as appellant is not undertaking only the activity of relabeling; it is his submission that credit cannot be denied when the duty paid on the goods cleared subsequently as manufactured product, is the law settled by the Tribunal in the case of Hikal Ltd. vs. CCE Raigad [2017(346) ELT 316 (Tri.- Mumbai)]. 3. Ld. DR reiterates the findings of the lower authorities an .....

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..... ct marketable to the customer shall amount to manufacture." 6. It can be seen from the above reproduced chapter note the activity would amount to manufacture if labelling or relabelling of the containers are undertaken after repacking from bulk packs. In the case in hand it is undisputed that Hydrogen Peroxide imported in 65 Kgs and 30 Kg containers were relabelled after adding stabilizers and stirring the Hydrogen Peroxide as their own product. The activity of repacking from bulk pack to retail packs has not taken place in the case in hand, hence chapter note 9 of Chapter 28 is not applicable. If that be so, the imported Hydrogen Peroxide cleared as their own products, needs to be held as removal of inputs as such. It is undisputed that .....

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