2012 (4) TMI 505

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....jay Jain, AR, for the Respondent. ORDER The appellant have a unit for manufacture of Polypropylene Woven bags in Varanasi from where they clear the bags on payment of duty to their factory located at Satna, Madhya Pradesh. In the factory at Satna, the bags are printed. The Satna unit takes Cenvat credit of the duty paid on P.P. Bags and after printing the bags cleared the same on payment of ....

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....for final disposal after waiving the requirement of pre-deposit. 3. Shri Bipin Garg, Advocate, ld. Counsel for the Appellant, pleaded that in respect of the appellant unit at Satna, M.P. the department on its application had issued Central Excise registration that, the unit was subjecting the P.P. bags to the process of printing as per the customer's specifications, that the printed bags were c....

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....appellant unit i.e. printing of polypropylene woven bags does not amount to manufacture and hence they are not eligible for Cenvat credit. However, Rule 3(5) of the Cenvat Credit Rules, 2004 provides that when the Cenvat credit availed inputs are cleared as such, an amount equal to the Cenvat credit required to be paid. Then even if the department's stand that process undertaken by the appellant d....