Cenvat credit on duty-paid repair invoices remains available despite the underlying activity not amounting to manufacture.

Cenvat credit is available to the recipient where duty has been charged and collected on a repair invoice, even if the underlying repair activity does not amount to manufacture. The duty-paid invoice remained a valid basis for credit because the department had not revised the assessment at the repairer's end or undone the duty payment by refund. Credit could not be denied at the recipient's end on the ground that the service was repair rather than manufacture, and the cited precedent applied the same principle.

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Issues: Whether Cenvat credit could be denied to the receiver on duty paid and reflected in the repair invoice, even though the underlying repair activity did not amount to manufacture.

Analysis: The credit was taken on the basis of an invoice issued for repair of rotor assembly, and duty had in fact been charged and collected by the department from the repairer. Once such duty payment was evidenced by the invoice, the receiver could not be denied credit merely because the activity was in the nature of repair and not manufacture. Denial of credit at the recipient's end would have required first revising the assessment at the repairer's end and undoing the duty payment there. Since no such revision or refund had been effected, the duty-paid invoice remained a valid basis for credit. The same principle had been applied in the cited precedent.

Conclusion: Cenvat credit was correctly allowed and could not be denied to the respondent.

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