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TMI Blog2018 (4) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that: - neither appellant can avail the credit nor they are required to pay duty on the cleared goods. Here they have done both which apparently do not prejudice the Revenue except for legal issue. As such, this is not a case calling again reversal of credit and imposition of penalty. Once the duty is paid by the assessee treating the activity as manufacturing activity and cenvat credit i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of the appellant to avail credit on the duty paid materials purchased by them and further cleared after some process. The Revenue entertained a view that these goods on which credits were availed were not put to any manufacturing process either directly or incidental to the manufacture of the product and they were virtually cleared as such after some drying etc. Hence the credit on these input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t were put to some process which apparently did not amount to manufacture . However, on clearance of such goods on higher value appellant discharged duty. For discharging such duty, the credit availed on the inputs were used. If process undertaken by the appellant does not amount to 'manufacture' the credit on inputs as well as liability on the cleared goods will not arise. In other words ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court and Gujarat High Court held that once the duty is paid by the assessee treating the activity as manufacturing activity and cenvat credit is availed, there is no question of reversion of cenvat credit. We note that the Tribunal in many cases held that if the activity of the assessee does not amount to 'manufacture', there can be no question of levy of duty and duty if levied, credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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