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TMI Blog2014 (7) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... ted coils and sheets of heading 760 9290 of the Central Excise Tariff Act, 1985 and is registered with the Central Excise department. The goods manufactured are dutiable and accounted in daily production registers i.e. RG1 and also files monthly returns under Rule 12 of the Central Excise Rules, 2002. The appellant is also availing the benefit of CENVAT credit on inputs, input services and capital goods which are used in or in relation to the manufacture of excisable goods as visualized under Rule 2(a), 2(k) and 2(l) read with Rule 3 of the CENVAT Credit Rules, 2004. All the inputs are received under the cover of appropriate duty paying documents for which appropriate CENVAT account is stated to be maintained and CENVAT credit returns filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h cut to size sheets on payment of excise duty. Such activity was also done during the month of October 2010 and January 2011. 4. Show cause notice dated 30/03/2011 was issued alleging that the activity of de-coiling the sheets, cutting to length, shearing and other activity like de-greasing, cleaning, etc. did not amount to manufacture and amounted to removal of inputs as such and accordingly the CENVAT credit availed was proposed to be disallowed for Rs. 3,64,02,946/- under Rule 14 of CENVAT Credit Rules, 2004. Similar show cause notice was also issued dated 01/11/2011 for similar activity for the month of October 2010 and January 2011 asking to show cause as to why CENVAT credit of Rs. 14,41,390/- be disallowed. The appellant appeared a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s having subjected to processing resulting in value addition as the same have been cleared at appropriate rate of duty which is higher and it cannot be said that the inputs are cleared as such. 5(a) The next ground taken is that the appellant is registered with the Central Excise department for the activity of manufacturing colour sheets which includes activity of cutting, slitting along with cleaning, de-greasing, etc. of the sheets or raw material. 5(b) The next ground raised is that the appellant have not indulged in any new activity as the activity is a common activity and incidental in manufacturing of colour sheets, which are also cut to size, on finishing for making them marketable. Only because the clearance in question are not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (243) ELT A121 the hon'ble Bombay High Court has held that assessment on decoiled HR/CR coils cleared from factory of assessee on payment of duty had neither been reversed nor it was held that assessee was entitled to refund of that duty at the time of clearance of the de-coiled HR/CR coils. Once duty on final products have been accepted by the department CENVAT credit availed need not be reversed even if the activity does not amount to manufacture. Reliance was placed by the Bombay High Court on a similar view taken by the Gujarat High Court in Commissioner of Central Excise vs. Creative Enterprises 2009 (235) ELT 785. 6. The learned DR supports the order-in-original, drawing particular attention to par 56 of the Order-in-Original wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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