2015 (2) TMI 790

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....9,752/- along with interest thereon under the provisions of the Central Excise Act read with Cenvat Credit Rules, 2004 and also imposed an equivalent amount of penalty under the various provisions against the appellant M/s Rochem Separations Systems (I) Pvt. Ltd. Aggrieved of the same, the appellant is before us. 2. The learned Counsel for the appellant submits that the appellant had imported membrane/disc for water filter system and after importation they had undertaken certain treatment/processes and repacked the same after adding some features and sold the same as membrane. The appellant was under the bona fide belief that the activity undertaken by them amounted to manufacture and, therefore, they discharged excise duty liability on th....

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....se duty paid by them, which was higher than the amount of credit availed and confirmation of duty demand. In such a situation, even if the processes undertaken did not amount to manufacture, the liability to reverse credit would not arise at all. 3. Learned Addl. Commissioner (AR) appearing for the Revenue reiterates the findings of the adjudicating authority. He submits that as per the show-cause notice, the credit taken by them in respect of SAD is more than the amount of excise duty liability discharged by them and thus excess credit was being used for payment of duty. Accordingly, he pleads for upholding the impugned order. 4. We have carefully considered the submissions made by both sides. 4.1 We are of the view that the appeal itse....