2014 (11) TMI 327

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....lso imposing equivalent amount of penalty by denying the CENVAT Credit holding that the activity undertaken by the appellant on the input received does not amount to manufacture. Aggrieved of the same, the appellant is before us. 2. The learned Counsel for the appellant submits that the appellant purchased 'Non-Woven Fabrics' of viscose / synthetic fiber. These fabrics are tested for the quality and therefore, they cut these fabrics into the required size and shape and supply it to M/s Trident Enterprises. They also purchase non-woven filter fabrics, on which they undertake the process of re-rolling, rejoining, re-measuring and cutting before supply as finished goods. The appellant bona fidely believed that the activity undertake....

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....ith metal, of a kind used for technical purposes;         (vi) Cords, braids and the like, whether or not coated, impregnated or reinforced with metal, of a kind used in industry as packing or lubricating materials;     (b) textile articles (other than those of headings 5908 to 5910) of a kind used for technical purposes [for example, textile fabrics and felts, endless or fitted with linking devices, of a kind used in paper making or similar machines (for example, for pulp or asbestos-cement), gaskets, washers, polishing discs and other machinery parts]." The department was of the view that the activity undertaken by the appellant did not amount to 'manufacture' and, therefo....

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....held that when amount of CENVAT/MODVAT Credit wrongly availed is exactly equivalent to the amount of excise duty paid by not availing the exemption, the consequence would be revenue neutral and, therefore, there is no need to reverse any credit. He also submits that these decisions have been followed by the Tribunal in the case of Colour Roof (India) Ltd. - 2014-TIOL-628-CESTAT-MUM and other cases also. 2.2 The learned Counsel also submits that they have paid a Central Excise duty of Rs. 1431/- on the waste which has arisen and they are not disputing this liability, which they have paid through PLA. Accordingly, he pleads that impugned demand (excluding the amount of Rs. 1431/-) is not sustainable in law. 3. The learned Supdt. (AR) ap....