CESTAT allowed the appeal, holding the impugned orders...

CESTAT allowed the appeal, holding the impugned orders unsustainable and answering all issues in favour of the appellants. The Tribunal found the conversion processes amounted to manufacture for purposes of the Central Excise Tariff and upheld the appellants' entitlement to benefit under Notification No.56/2002-CE and to claim CENVAT credit, including on goods returned, remade and cleared on payment of duty. Revenue was held precluded from reopening past periods after having accepted contrary appellate orders and coordinate decisions; recovery as an "erroneous refund" could not be initiated absent challenge to the original assessment/self-assessment under the statutory appeal provisions. Consequently, demands and denials were set aside and the appeal allowed.

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