2017 (6) TMI 267

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..... ase is that the appellants were engaged in the purchasing of duty paid fabrics under Chapter 5406.10 under the provisions of Rule 12B read with Rule 9 of Central Excise Rules, 2002 and clearing the said products on payment of duty after availing CENVAT Credit as per the provisions of Cenvat Credit Rules, 2002. The appellant was also following the Central Excise procedures prescribed in the statute .....

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..... V. Shetty, learned Counsel appearing for the appellant submits that even though w.e.f. 9.7.2004, the procedure prescribed under Rule 12B has been omitted but since the appellant paid the excise duty on clearance of the processed goods, the credit is admissible. He further submits that even Rule 16 of Central Excise Rules also permits to avail the credit on the duty paid goods and even if the activ .....

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..... ri-Kol) (e) Crompton Greaves Ltd. - 2008 (230) ELT 488 (Tri-Mum) 3. On the other hand, Shri N.N. Prabhudesai, learned Supdt. (AR) appearing on behalf of the Revenue submits that since the appellant does not remain as a manufacturer, CENVAT Credit after 9.7.2004 is not permissible as the CENVAT Credit is admissible only in case the assessee hold the status of manufacturer. He relied upon the fo .....

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..... ve discharged the excise duty on the processed goods and it was observed that the excise duty paid was more than the CENVAT Credit availed. It is a settled law that once the excise duty is paid even on the non-excisable goods, the CENVAT Credit should be allowed. Moreover, as per Rule 16 even if the activity does not amount to manufacture the CENVAT Credit is admissible on the duty paid goods subj .....

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..... ks Plant (supra), this case supports the appellant's case as in that case it was held that the assessee is required to pay amount equal to credit availed by them under Rule 16(2). Consequently, the CENVAT Credit was admissible. The case of Tata Chemicals (supra) of Hon'ble Supreme Court does not dealt with the facts of the present case, therefore, the same is not applicable. The facts of t .....

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