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TMI Blog2011 (9) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... hose to reply saying that they can undertake reprocessing and no permission is required. Even for coming to the conclusion the reprocessing did not amount to manufacture, other than the internal correspondence indicating that SKO was to be reprocessed, no evidence has been shown to us to show that SKO was not mixed with crude and the name does not matter and as regards the document, no doubt it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Chattopadhyay, Consultant, for the Appellant. Shri B.B. Agarwal, Commissioner (AR), for the Respondent. ORDER Appellants took Cenvat credit of Rs. 1,27,77,402.00 of duty paid on superior kerosene oil (SKO) received from their marketing division. After receiving the same they wrote a letter to the Department that the SKO was received from their marketing Department for mixing with crud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he marketing department of the appellant was registered with Central Excise Department as a dealer and therefore the document issued by them is a document which is covered by the rules. Further he also submitted that no evidence has been put forth by the Revenue to show that the SKO was not mixed with the crude and processed as claimed by them in their letter written to the Department in 2005 itse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... document does not fulfil the requirement of Central Excise Rules, 2002 and Cenvat Credit Rules, 2004. Therefore, the appellant has clearly misdeclared to the Department that SKO will be processed with crude and whereas what was undertaken was only reprocessing. 4. We have considered the submissions made by both the sides. In the letter written by the appellants to the Department, it was clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts to manufacture, once SKO is mixed with crude, SKO looses its identification and becomes part of crude. Hence in our opinion processing amounts to manufacture. Proper officer is required to look into the correctness of availment of credit and utilization of all the inputs. This aspect has not been considered. Under these circumstances we consider that appellant has made out a prima facie case f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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