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TMI Blog2011 (4) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... i-finished ayurvedic medicines. His understanding was the said products are not excisable. Therefore, the assessee cleared those goods to their sister unit at Bangalore without payment of duty. The Excise Department was of the view that it is excisable to tax and when it was demanded by the Excise officials, the assessee has deposited the said amount. After depositing the said amount, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nied the Cenvat credit, when admittedly he has paid the excise duty. 2. The assessee has a factory at New Delhi where they manufacture semi-finished ayurvedic medicines. His understanding was the said products are not excisable. Therefore, the assessee cleared those goods to their sister unit at Bangalore without payment of duty. The Excise Department was of the view that it is excisable to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason assigned was that the assessee had not taken credit on the basis of the invoices issued at the time of clearance of the goods. It is at a later point of time, he has made certain deposits and therefore, he could not avail the cenvat credit. Aggrieved by the said order, the assessee preferred an appeal to be Tribunal. The Tribunal on consideration of the aforesaid facts, held that this is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e non-excisable by the same bench of CESTAT in their Order No. 915-916/2005 dated 3-6-2005 [reported in 2005 (187) E.L.T. 427 (Tri. -Bang.)], relating to same assessee on the issue of excisability of goods manufactured at Delhi? 4. Whether the CESTAT s order is in accordance with the ten Rule 57AE of the Central Excise Rules 1944, in allowing the credit of duty on such non-excisable goods, merel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Once he deposited the amount, in principle, he is entitled to avail the benefit of cenvat credit, which he has done at Bangalore factory. The manufacturer has to pay tax at the point of clearance and then collect it from his customers. Once, he pays the tax, he is entitled to avail the credit and subsequently utilize the same. At any rate, for the fault of the department, the assessee cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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