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TMI Blog2013 (10) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... that:- Chilli seeds emerge before the manufacturing process of oleoresin commences and therefore the appellant may not be required to reverse input credit - As regards the input service, the appellant has already reversed the proportionate amount of CENVAT credit –Following Rallies India Ltd. vs. UOI [2008 (12) TMI 46 - HIGH COURT BOMBAY] - As regards de oiled cakes, there is no dispute that it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... illi before commencement of manufacture of oleoresin and de oiled cake which emerges after the oleoresin is extracted from chili. 2. The learned counsel for the appellant submits that the chilli seeds emerge before the process of manufacture of oleoresin. Therefore, no input credit can be attributed on emergence of chilli seeds during the course of manufacture of oleoresin. However, he submits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted. According to Rule 16 of Central Excise Rules, 2002, the credit can be availed even if any process is carried out. If the process carried out amounts to manufacture, duty will be payable on the transaction value and if the process does not amount to manufacture, CENVAT credit is required to be reversed. In the appellants case, the entire quantity has been exported and therefore, the questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturing process of oleoresin commences and therefore the appellant may not be required to reverse input credit has considerable force. As regards the input service, the appellant has already reversed the proportionate amount of CENVAT credit. Moreover, prima facie, the decision in the case of Rallies India Ltd. may be applicable to chilli seeds also. As regards de oiled cakes, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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