9911796707
TMI Blog2023 (12) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of appropriate duty of excise on its transaction value, which was more than the credit availed on the inputs. The Revenue disputed the processes undertaken on the imported items alleging the same do not result into manufacture of a new item different from the inputs; hence the activity undertaken by the appellant is purely in the nature of trading; therefore, cenvat credit availed on the inputs cannot be admissible. This issue is no more res integra as it has already been settled by various decisions as cited by the learned counsel for the appellant. In THE COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS AJINKYA ENTERPRISES [ 2012 (7) TMI 141 - BOMBAY HIGH COURT] , the Bombay High Court taking note of the arguments of the Revenue, more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pectively, with interest and also proposing penalties under Rule 15(1) of Cenvat Credit Rules, 2004. On adjudication, demands were confirmed with interest by the Commissioner, who in turn, rejected their appeal. Hence, the present appeal. 3. At the outset, the learned advocate for the appellant assailing the impugned order submitted that the appellant manufactures high-end precision for metal cutting industry and customise the goods as per the requirement of customers. They import raw materials / inputs for manufacture of finished goods and avail cenvat credit on the said imported / procured locally inputs as per the Cenvat Credit Rules, 2004. They cleared the final products on payment of duty and also at times cleared the inputs as suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative for the Revenue reiterated the findings in the impugned orders. 5. Heard both sides and perused the records. We find that the short issue involved in the present appeals is: whether the cenvat credit availed on imported/locally procured inputs when subjected to the processes by the appellant, disputed not to be a process of manufacture by the Revenue, then the cenvat credit availed on such inputs and utilised in discharging duty applicable on the processed goods be recoverable. In the present case, the appellants are engaged in the manufacture of various high precision tools, and also import certain parts used as inputs. The tools were customised and sold by the appellant on payment of appropriate duty of excise on its transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be reversed even if the activity docs not amount to manufacture. Admittedly, similar view taken by the Gujarat High Court in the case of Creative Enterprises has been upheld by the Apex Court [see 2009 (243) E.L.T. A121] by dismissing the SLP filed by the Revenue. 6.1 The said principle later followed by the Hon ble Karnataka High Court in appellant s own case (supra). Their Lordships at para 7 observed as follows: 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 such, in vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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