Calcutta HC Upholds CESTAT Decision: Activities Are 'Manufacture of Excisable Goods,' Cenvat Credit Eligibility Confirmed.

The HC of Calcutta dismissed the revenue's appeal against the CESTAT, Kolkata's decision, affirming that the respondent's activities constituted 'manufacture of excisable goods' under Section 2(f) of the Central Excise Act, 1944. The Tribunal's decision on the respondent's eligibility for Cenvat Credit on duty-paid input machineries was upheld, with the HC finding no substantial question of law.

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Issues:
- Appeal against final order of Customs, Excise and Service Tax Appellate Tribunal, Kolkata
- Interpretation of activities as 'manufacture of excisable goods' under Section 2(f) of the Central Excise Act, 1944
- Eligibility to avail Cenvat Credit on duty paid input machineries

Analysis:

The High Court of Calcutta, comprising of Justice Surya Prakash Kesarwani and Justice Rajarshi Bharadwaj, heard an appeal filed by the revenue challenging the final order of the Customs, Excise and Service Tax Appellate Tribunal, Kolkata. The Tribunal had considered the activities of the respondent, who procured duty paid machineries and parts to produce final products for export after payment of duty under claim of rebate. The Tribunal noted that the activities amounted to 'manufacture of excisable goods' under Section 2(f) of the Central Excise Act, 1944. It was observed that the input machineries were goods classifiable as excisable goods under different tariff items from the exported final products. The Tribunal found the appellant eligible to avail Cenvat Credit on the duty paid input machineries, parts, etc., under the Cenvat Credit Rules. The High Court concurred with the Tribunal's findings, stating that they were based on relevant evidences and legal precedents set by the Hon'ble Supreme Court. Consequently, the High Court dismissed the appeal at the admission stage, ruling that no substantial question of law arose from the impugned order of the Tribunal.

In conclusion, the judgment upheld the Tribunal's decision regarding the activities being classified as 'manufacture of excisable goods' and affirmed the appellant's eligibility to avail Cenvat Credit on the duty paid input machineries. The High Court found no substantial question of law arising from the Tribunal's order and dismissed the appeal accordingly.

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