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TMI Blog2012 (11) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... ount to manufacture. 3. The period in dispute is October, 2009 to March 2010. The contention of applicant is that the Board issued a Circular dt. 7.9.2001 to the fact that activity of cutting and slitting of HR/CR Coils amounts to manufacture. The circular was quashed by the Hon'ble High Court of Delhi vide its order dated 21.11.2003, Revenue filed SLP before the Hon'ble Supreme Court and the same was also dismissed. Ultimately, the circular was withdrawn on 2.3.2005. Thereafter a circular was issued on 14.1.2010 clarifying the process of cutting and slitting of HR/CR Coils does not amount to manufacture no credit is admissible in respect of the duty paid on HR/CR Coils. It is further clarified that in case the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken credit and paid duty is now decided by the Hon'ble Bombay High Court in the case of Ajinkya Enterprises (supra) are held as under:- On appeal filed by the assessee, the Commissioner (Appeals) confirmed the demand and dismissed the appeal filed by the assessee. On further appeal filed by the assessee, the CESTAT by the impugned order dated 23rd June 2011 allowed the appeal and held that the assessee is not required to reverse the credit of duty paid on HR/CR coils. Challenging the aforesaid order, the Revenue has filed the present appeal. According to the Revenue once a Circular was issued by the CBEC on 2nd March 2005 thereby withdrawing the earlier Circular dated 7th September 2001, it was clear that the activity of decoiling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent case, the Revenue, based on the Circular dated 2nd March 2005, is justified in calling upon the assessee to reverse the credit or pay the amount to the extent of the credit liable to be reversed, with interest and penalty? It is relevant to note that the Board in its Circular dated 7th September 2001 had only held that the activity of cutting/slitting of HR/CR coils in to sheets or strips constitutes manufacture. Admittedly, the assessee had carried on additional activities such as pickling and oiling on the decoiled HR/CR coils, which is a complex technical process involving huge investment in plant and machinery. Since these additional activities were not considered by the Board in its Circular dated 7th September 2001, the withdr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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