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TMI Blog2013 (5) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of duty may be more than the credit attributable to such inputs. As decided in Commissioner of Central Excise Vs. Delta Corporation as reported 2013 (2013 (2) TMI 31 - GUJARAT HIGH COURT) credit could not be denied on the ground that no manufacturing activity was carried on by the assessee - in the present case the demand has been raised for disallowing the Cenvat Credit on C.R. Coils and Zinc. Demand is unsustainable as Rules allow the clearance of inputs as such or after partially proceeding on reversal of the Cenvat Credit availed on these inputs. The duty paid on the G.P. Coils etc., is more than Cenvat Credit taken and needs to be adjusted against the demand of the Cenvat Credit. Therefore the demand of Cenvat Credit is not sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso cleared said goods G.P. Coils for export on payment of duty under claim for rebate amounting to Rs. 88,71,269/- by debiting the duty amount from the wrongly taken Cenvat Credit amount. Accordingly the Show Cause Notice dated 4-04.05.2005 was issued to the appellants for disallowing the Cenvat Credit of Rs. 1,21,86,295/-and also demanding the amount of Rs.88,71,269/- under Section 11A of the Central Excise Act, along with interest and also proposing the penalty. The said SCN was adjudicated by the Commissioner by the impugned order in which he confirmed that the demand of Cenvat Credit amounting Rs. 1,17,45,077/-. It was also ordered that out of the said amount to Rs. 88,71,269/- is to be paid through PLA and equal amount of penalty was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts does not amount to manufacture, question of taking credit does not arise. He therefore submits that they have rightly been disallowed the Cenvat Credit in this case. 5. After hearing both sides, we find that the Cenvat Credit in the present case has been denied to the appellants on the ground that process, of galvanization does not amount to the manufacture. We also take note that under Cenvat Credit Rules, the inputs can be cleared as such or after being partially processed on reversal of amount equivalent to credit availed on such inputs. That means if credit has been taken by the appellants on the inputs i.e. C.R. Coils then the Coil can be cleared as such or after some processing after reversal of the Cenvat Credit availed on the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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