Cenvat credit on duty-paid aluminium foil upheld under transitional notification covering earlier credit period.

Cenvat credit on duty-paid aluminium foil purchases was treated as admissible despite the supplier's activity being characterised as not amounting to manufacture, because Notification No. 24/2012-C.E. (N.T.) dated 19-4-2012 protected credit taken up to 15-3-2012. As the disputed period was August 2005 to June 2010, the notification was held applicable to the case, and the Revenue accepted that position. The appellant was therefore entitled to the credit, with pre-deposit dispensed.

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Issues: Whether Cenvat credit on aluminium foil duty-paid purchases was admissible when the supplier's activity was treated as not amounting to manufacture, and whether the benefit of Notification No. 24/2012-C.E. (N.T.) dated 19-4-2012 applied to the period in dispute.

Analysis: The dispute turned on entitlement to Cenvat credit where the supplier's aluminium foil was alleged not to have emerged from manufacture in the supplier's hands. The appellant relied on Notification No. 24/2012-C.E. (N.T.) dated 19-4-2012, which permitted non-reversal of Cenvat credit taken up to 15-3-2012. Since the period involved was August 2005 to June 2010, the notification was held to cover the case. The Revenue accepted this proposition.

Conclusion: The appellant was entitled to Cenvat credit and the appeal was allowed with dispensation of pre-deposit.

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