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TMI Blog2024 (2) TMI 1301X X X X Extracts X X X X X X X X Extracts X X X X ..... ards payment of duty and subsequently it was held that the process which was undertaken did not amount to manufacture and, therefore, the said clearances did not attract central excise duty. Under those circumstances, it was held that since the duty payment was accepted by Revenue, the availed cenvat credit cannot be reversed. Such circumstances are not available in the present case. Therefore, the ruling in the said case is not applicable in the present case. Insofar as the impugned order is concerned in respect of the allowance of cenvat credit of Rs.5,63,66,047/- is concerned, there are no infirmity with the same - that part of the impugned order through which cenvat credit of Rs.5,63,66,047/- was disallowed is not interfered and is o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and stored the same in Customs Bonded Warehouse at Mahul Village, Chembur, Mumbai. Appellant cleared vinyl acetate monomer to their customers directly from the said Customs Bonded Warehouse, but maintained the records in such a manner that the record indicated that the said inputs were received in the factory and subsequently cleared from the factory as clearance of inputs as such as provided under sub-rule (5) of Rule 3 of Cenvat Credit Rules, 2004. Appellant without bringing the said goods into the factory used to take cenvat credit of the admissible duties and issued central excise invoice for clearance of the same to their customers by debiting the cenvat credit account and passed on the credit to their customers. Further, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended that they have chosen the option of reversing the proportionate credit attributable to trading activity and, therefore, they are not liable to pay the amount demanded in the show cause notice. The said show cause notice was adjudicated through the impugned orderin- original. Learned original authority has observed that the appellant has contended that they have reversed the credit and, therefore, they were not liable to pay the said demanded amount whereas the fact was that despite availing inadmissible cenvat credit, the appellant had passed the said credit to their customers and, therefore, the said demand of Rs.5,63,66,047/- was confirmed by the original authority. In respect of the other demand, learned original authority has held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Rules. He has submitted that there are large number of decisions of this Tribunal wherein it has been held that the appellant can reverse proportionate credit as provided in Rule 6(3)(ii) of Cenvat Credit Rules, 2004. He has relied on the following decisions:- a) Mercedes Benz India (P) Ltd. reported at 2015 (40) STR 381 (Tri.-Mumbai). b) Aster Pvt. Ltd. reported at 2016 (43) STR 411 (Tri.-Hyd.). c) Commissioner of Central Excise, Puducherry vs. CESTAT Chennai reported at 2015 (323) ELT 323 (Mad.). d) Eaton Power vs. CCE, Pune-I reported 2023-(12)-TMI-172- CESTAT Mumbai. d) Accura Valves Pvt. Ltd. vs. CGST CE, Nashik 2018-12- TMI-428-CESTAT, Mumbai. In respect of the other appellant who is Managing Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the fact is that the cenvat credit was utilized by debiting the same through the invoices issued by the appellant for sale of inputs directly from the Customs Bonded Warehouse. We have also gone through the decision of this Tribunal in the case of Ajinkya Enterprises (supra). In the said case, cenvat credit was availed and after processing of inputs, the same was utilized towards payment of duty and subsequently it was held that the process which was undertaken did not amount to manufacture and, therefore, the said clearances did not attract central excise duty. Under those circumstances, it was held that since the duty payment was accepted by Revenue, the availed cenvat credit cannot be reversed. Such circumstances are not available in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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