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TMI Blog2018 (3) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... les. During the course of audit and scrutiny of the records of the appellant for the period December, 2010 to November 2012 it was noticed that appellant had availed Cenvat credit of Rs. 41,86,867/- paid as CVD on imported finished goods namely plastic closure. The case of the department is that these goods are not input but are finished goods hence are not used in or in relation to the manufacture of final product but were traded as such in the open market. The Cenvat credit on these goods is inadmissible in terms of Rule 3(1) and 2(k)(l) of Cenvat Credit Rules. Accordingly, a show cause notice was issued for denial of Cenvat Credit and recovery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igarh Vs. Komal Metal Pvt. Ltd. 1995 (77) ELT 588 (Tri.-Del.) (vi) PSL Holdings Ltd. Vs. CCE, Rajkot 2003 (156) ELT 602 (Tri.-Bom) (vii) Vinayak Industries Vs. CCE Rajkot 2003 (159) ELT 456 (Tri.-Bom.) (viii) CCE Indore Vs. M.P. Telelinks Ltd. 2004 (178) ELT 167 (Tri.-Del.) (ix) CCE Vs. Delta Corporation 2013 (287) ELT 15 (Guj.) (x) CCE, Pune Vs. Ajinkya Enterprises 2013 (294) ELT 203 (Bom.) 3. On the other hand, Shri. S.V. Nair, Ld. Asstt. Commissioner (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He further submits that Cenvat credit is admissible only in respect of input which is used in or in relation to the manufacture of final product and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules. (2 If the process to which the goodsare subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be. [Explanation. - The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich was not disputed by the lower authorities that appellant have paid the excise duty at the time of sale of such imported plastic closure. It is found that appellant have paid duty equivalent to the Cenvat credit availed, no further demand would exist. However if there is any shortfall only that much amount shall be recoverable. Ld. Counsel submitted various statements to establish that excise duty on the bought out imported goods was paid at the time of sale of such goods. On going through various judgments relied upon by the Ld. Counsel, I find that it is consistently held that even though the credit was wrongly taken on any goods if th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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