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TMI Blog2024 (11) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... dit on demurrage charges. Credit sought to be reversed on the ground that machine was not subjected to the process of manufacture - HELD THAT:- The appellant after receipt of the machine, in response to the Department s query submitted that the lathe machine is a customised capital goods and it is fabricated according to the required specifications of the customer. They contended that after the machine was received from the Pune customer, it was remanufactured by dismantling and thereafter adding certain materials / inputs enhancing its features and assembled it to make it customer-worthy. These works carried out on the lathe machine cannot be termed as process of repairing of rejected machine but results into manufacture. The said goods ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide invoice No.709 dated 02.02.2006 on payment of appropriate duty of Rs.2,45,551/-. The customer rejected the said goods which was received by the appellant against their Invoice No.EX-025 dated 17.07.2008. The appellant had availed credit of the duty earlier paid under Rule 16(1) of the Central Excise Rules, 2004 as if it is an input. Later, the appellant had cleared the goods after making necessary changes by adding components on payment of duty on the transaction value of the said machine at the rate applicable at the time of clearance. Alleging that the machine was not subjected to the process of manufacture; hence the appellant is required to reverse the credit availed on such returned machine under Rule 16(2) of the Central Excise Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing at the time of its clearance. In support, they have referred to the following judgments:- a. Indian Aluminium Co. Ltd. Vs. CCE [2008(01) LCX 0468-In the High Court of Kerala] b. Hot Line CPT Ltd. Vs. CCE, Indore [2015(318) ELT 141 (Tri.)] c. Deepak Nitrate Ltd. Vs. CCE, Rajgad [2016(335) ELT 254 (SC)] d. CCE, Vapi Vs. Castrol India Ltd. [2016(339) ELT 265 (Tri.)] 3.2. On the issue of availing of cenvat credit of Rs.3371/-, the learned advocate further submits that it was taken on the demurrage charges paid to M/s. Mysore Sales International Ltd., Bangalore for storage of the goods. He submits that payment of tax has not been questioned; hence admissibility of credit disputing its classification cannot be denied. 4. Learned AR for the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n going through the list of materials appended with the appeal paper book, it is seen that certain features of the earlier machine after dismantling it had been added and as a new commodity with distinct use had emerged as a result of the processes; therefore, bringing out a new machine. Hence, the processes resulted into manufacture. In these circumstances, the payment of the duty on the transaction value of remanufactured machine is justified. Regarding the issue of admissibility to credit on demurrage charges, it is seen that the same was taken on proper tax paid invoices and leviability of tax and its classification was is not disputed; hence, availment of credit cannot be disputed. 8. In the result, the impugned order is set aside and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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