2024 (7) TMI 266 - HC - Central Excise

Activity amounting to manufacture - Section 2(f) of the Central Excise Act, 1944 - Eligibility to avail Cenvat Credit on duty paid input machineries - HELD THAT - Tribunal has noted the facts that It is an undisputed fact that the appellant procured duty paid machineries, parts and accessories of Continuous Automatic Coil to Coil Colour Coating Line and Briqueting Hydraulic Press and carried out the processing jobs thereon as set out in the impugned order, which included assembly to produce the aforesaid final products which were exported upon payment of duty under claim of rebate. It is also seen from the records that the input machines, parts and accessories were goods classifiable as excisable goods by themselves under tariff items different from the tariff items under which the exported final products were classified - the activities undertaken by the appellant amounted to manufacture of excisable goods within the meaning of Section 2(f) of the Central Excise Act, 1944 - it was also held that the appellant is eligible to avail Cenvat Credit of the duty paid on the said input machineries, parts, etc. under the Cenvat Credit Rules and there is no infirmity on the part of the appellant in availment of Cenvat credit in the instant case. The findings recorded by the tribunal are findings of fact based on consideration of relevant evidences on record - no substantial question of law arises from the impugned order of the Tribunal - Appeal dismissed.

Summary

Issues:
- Appeal against final order of Customs, Excise and Service Tax Appellate Tribunal, Kolkata
- Interpretation of activities as 'manufacture of excisable goods' under Section 2(f) of the Central Excise Act, 1944
- Eligibility to avail Cenvat Credit on duty paid input machineries

Analysis:

The High Court of Calcutta, comprising of Justice Surya Prakash Kesarwani and Justice Rajarshi Bharadwaj, heard an appeal filed by the revenue challenging the final order of the Customs, Excise and Service Tax Appellate Tribunal, Kolkata. The Tribunal had considered the activities of the respondent, who procured duty paid machineries and parts to produce final products for export after payment of duty under claim of rebate. The Tribunal noted that the activities amounted to 'manufacture of excisable goods' under Section 2(f) of the Central Excise Act, 1944. It was observed that the input machineries were goods classifiable as excisable goods under different tariff items from the exported final products. The Tribunal found the appellant eligible to avail Cenvat Credit on the duty paid input machineries, parts, etc., under the Cenvat Credit Rules. The High Court concurred with the Tribunal's findings, stating that they were based on relevant evidences and legal precedents set by the Hon'ble Supreme Court. Consequently, the High Court dismissed the appeal at the admission stage, ruling that no substantial question of law arose from the impugned order of the Tribunal.

In conclusion, the judgment upheld the Tribunal's decision regarding the activities being classified as 'manufacture of excisable goods' and affirmed the appellant's eligibility to avail Cenvat Credit on the duty paid input machineries. The High Court found no substantial question of law arising from the Tribunal's order and dismissed the appeal accordingly.