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2020 (3) TMI 195 - AT - Central ExciseCENVAT Credit - cutting and slitting of CR Coils - process amounting to manufacture or not - HELD THAT - It is an admitted fact that after cutting and slitting of CR coils converting into sheets, the appellants have cleared the goods on payment of duty, therefore, in terms of the decision of the Hon ble Bombay High Court in the case of THE COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS AJINKYA ENTERPRISES 2012 (7) TMI 141 - BOMBAY HIGH COURT wherein it has been held that when the goods have been cleared on payment of duty after utilizing the Cenvat credit and the same will be termed as reversal of Cenvat credit, therefore, we hold that payments of duty by the appellant shall amounts to reversal of Cenvat credit sought by the revenue in the show cause notice. Appeal allowed - decided in favor of appellant.
Issues:
Appeal against denial of Cenvat credit for cutting and slitting CR Coils into sheets. Analysis: The judgment by the Appellate Tribunal CESTAT Chandigarh, delivered by Hon'ble Mr. Ashok Jindal, Member (Judicial) and Hon'ble Mr. Sanjiv Srivastava, Member (Technical), addressed the issue of denial of Cenvat credit to the appellants for cutting and slitting CR Coils into sheets. The impugned orders contended that this process did not amount to manufacture, thus the appellants were not entitled to avail Cenvat credit of duty paid on these coils. Despite the absence of the appellants or any request for adjournment, the Tribunal proceeded with the case due to the narrow compass of the issue. Upon hearing the Learned Authorized Representative (AR), the Tribunal noted that the appellants had cleared the goods after cutting and slitting CR Coils into sheets by paying duty. Referring to a decision of the Hon'ble Bombay High Court in a similar case, it was established that clearing goods on payment of duty after utilizing Cenvat credit amounts to reversal of Cenvat credit. Consequently, the Tribunal held that the duty payments made by the appellants constituted reversal of Cenvat credit sought by the revenue in the show cause notice. Based on this analysis, the Tribunal found no merit in the impugned orders and set them aside. As a result, the appeals were allowed with consequential relief. The judgment was dictated and pronounced in open court, providing a clear resolution to the issue at hand.
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