TaxTMI 
TaxTMI 
2023 (9) TMI 408
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....rigendum dated 17.12.2012 issued to the said order in original. 2. During the course of audit of the records of the appellants company it was noticed by the department that besides manufacturing excavator parts, the appellant is also engaged in undertaking various processes on MS plates cleared by them upon payment of duty to their sister unit at Dharwad. The processes undertaken include, clearing, cutting & drilling. The show cause notice lists out such processes undertaken by the appellant on MS plates as not amounting to manufacture in terms of Section 2(f) of the Central Excise Act, 1944 The Act. It alleged that the credit availed by the assessee on such MS plates was irregular and in violation of Rule3(1) read with Rule 2(k) of the Ce....
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....erest as applicable and imposing penalty equivalent to the amount of Cenvat Credit availed, vide corrigendum dated 17.12. 2012 issued to the order in original, an amount of Rs.1,61,96,910 was appropriated by the department. 6. Heard the rival submissions of the two sides. 7. The facts are not quite in dispute. We note that it is a settled position in law that if Cenvat Credit is availed on goods (inputs) that are subjected to certain processes, that do not amount to manufacture, and if such goods are cleared on payment of excise duty, then there is no requirement for reversal of Cenvat Credit availed on the inputs. It is also the appellants contention that even if it is assumed that the processes undertaken viz cleaning, cutting and drill....
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....size was concerned with and the Tribunal had upheld the availment of CENVAT credit on HR/CR coils and its utilization for payment of duty on decoiled HR/CR coils cleared. 7.3. To similar purport, is the decision of the Hon'ble Karnataka High Court, relied upon by the appellant, in the case of CCE, Bangalore Vs. Vishal Precision Steel Tubes & Strips Pvt. Ltd. 2017 (349) ELT 686 Kar. It has been categorically held therein, that once duty is paid by assessee treating the processes undertaken as a manufacturing activity due CENVAT credit cannot be denied. The relevant portion of the Hon'ble High Court's order is extracted below: "7. It is an undisputed position that the final product is treated as dutiable and duty is paid by the assessee. W....