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of <h1>Tribunal allows appeal on CENVAT credit shift to new factory, directs reversal on trading activity credit.</h1> <h3>Sealed Air (India) Pvt. Ltd. Versus Commissioner of Central Excise And Others</h3> Sealed Air (India) Pvt. Ltd. Versus Commissioner of Central Excise And Others - TMI Issues involved:1. Availment of CENVAT credit on finished goods shifted to a new factory without following Rule 10(3) of CENVAT Credit Rules.2. Availment of CENVAT credit on services used for both trading and manufacturing activities.Analysis:Issue 1: Availment of CENVAT credit on finished goods shifted to a new factory without following Rule 10(3) of CENVAT Credit Rules:The appellant shifted their factory to a new premises and cleared finished goods from the old premises to the new one after paying duty and utilizing CENVAT credit. The department contended that the process amounted to manufacture and denied the CENVAT credit. The appellant argued that proper packing was done for marketing purposes, and even though Rule provisions were not strictly followed, there was no revenue loss. The tribunal found the appellant's procedure acceptable as proper packing was crucial for marketing, and the process did not result in revenue loss. Therefore, the appeal was allowed on this issue.Issue 2: Availment of CENVAT credit on services used for trading and manufacturing activities:The second issue involved the appellant's availment of CENVAT credit on services used for both trading and manufacturing. During the relevant period, trading was not considered a deemed service. The tribunal referred to a previous case where it was held that proportionate credit related to trading activity must be reversed. The appellant agreed to reverse the proportionate credit attributable to trading activity in line with the previous decision. Consequently, the tribunal allowed the appeal on Issue No. 1 regarding CENVAT credit on shifted goods and directed the appellant to reverse the proportionate credit related to trading activity as per the previous ruling. The appeal was disposed of accordingly.In conclusion, the tribunal allowed the appeal on the first issue concerning CENVAT credit on finished goods shifted to a new factory, considering the marketing requirements and absence of revenue loss. The appellant was directed to reverse the proportionate credit related to trading activity as per a previous decision on the second issue.
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