Appellant entitled to cenvat credit on inputs for cutting stainless steel The Tribunal allowed the appeal, ruling that the appellant was entitled to cenvat credit on inputs used in the process of cutting/slitting stainless steel ...
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Appellant entitled to cenvat credit on inputs for cutting stainless steel
The Tribunal allowed the appeal, ruling that the appellant was entitled to cenvat credit on inputs used in the process of cutting/slitting stainless steel coils/plates, even if the activity did not amount to manufacture. The Tribunal held that Rule 16 of Central Excise Rules, 2002 permitted credit on duty-paid goods as inputs for payment on processed goods, deeming the impugned order unsustainable.
Issues: Whether the process of cutting/slitting of stainless steel coils/plates into specific dimensions amounts to manufacture under Section 2(f) of Central Excise Act, 1944 and if the appellant is entitled to cenvat credit on inputs used in the process.
Analysis: The appeal challenged an Order-in-Original passed by the Commissioner regarding the manufacturing status of cutting/slitting stainless steel coils/plates and cenvat credit eligibility. The Tribunal referred to a previous case where a similar activity was deemed manufacturing. The Tribunal ruled that even if the activity did not amount to manufacture, Rule 16 of Central Excise Rules, 2002 allowed credit on duty-paid goods as inputs for payment on processed goods. The Tribunal held that the impugned order was unsustainable based on Rule 16 and allowed the appeal.
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