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TMI Blog2023 (9) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of excise duty, then there is no requirement for reversal of Cenvat Credit availed on the inputs. It is also the appellants contention that even if it is assumed that the processes undertaken viz cleaning, cutting and drilling of MS plates do not amount to manufacture, Cenvat Credit on the inputs is essentially available to them. The fact of clearance of such goods to their sister unit on payment of excise duty is evident from records - it is also noted that the amount of duty paid by the appellant is higher than the amount of credit availed. The Hon ble Bombay High Court in the case of THE COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS AJINKYA ENTERPRISES [ 2012 (7) TMI 141 - BOMBAY HIGH COURT] , had upheld the Tribunal order, whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also engaged in undertaking various processes on MS plates cleared by them upon payment of duty to their sister unit at Dharwad. The processes undertaken include, clearing, cutting drilling. The show cause notice lists out such processes undertaken by the appellant on MS plates as not amounting to manufacture in terms of Section 2(f) of the Central Excise Act, 1944 The Act . It alleged that the credit availed by the assessee on such MS plates was irregular and in violation of Rule3(1) read with Rule 2(k) of the Cenvat Credit Rules 2004 The Rules . 3. It was further alleged that even though the assessee had paid the excise duty at the time of clearance on such processed MS plates, the credit availed on such MS plate was not in accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. 6. Heard the rival submissions of the two sides. 7. The facts are not quite in dispute. We note that it is a settled position in law that if Cenvat Credit is availed on goods (inputs) that are subjected to certain processes, that do not amount to manufacture, and if such goods are cleared on payment of excise duty, then there is no requirement for reversal of Cenvat Credit availed on the inputs. It is also the appellants contention that even if it is assumed that the processes undertaken viz cleaning, cutting and drilling of MS plates do not amount to manufacture, Cenvat Credit on the inputs is essentially available to them. The fact of clearance of such goods to their sister unit on payment of excise duty is evident from records ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , is the decision of the Hon ble Karnataka High Court, relied upon by the appellant, in the case of CCE, Bangalore Vs. Vishal Precision Steel Tubes Strips Pvt. Ltd. 2017 (349) ELT 686 Kar . It has been categorically held therein, that once duty is paid by assessee treating the processes undertaken as a manufacturing activity due CENVAT credit cannot be denied. The relevant portion of the Hon ble High Court s order is extracted below: 7. It is an undisputed position that the final product is treated as dutiable and duty is paid by the assessee. When once duty is paid by the assessee treating the activity as manufacturing activity by the Department, Cenvat credit is available and there is no question of reversion of Cenvat credit. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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