2015 (10) TMI 904

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....the Respondent: Shri B.B. Sharma, AR ORDER Per: Sulekha Beevi C.S. 1. The appeal is filed challenging the disallowance of Cenvat credit on bright bars used as inputs for the manufacture of Motor Vehicle Parts. 2. The appellants are engaged in the manufacture of goods falling under Chapter Heading 8708 & 8415 of the 1st schedule of the Central Excise Tariff Act, 1985. They are also av....

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....to be denied on the ground that Bright bars are not a commodity subject to excise duty as no process of manufacture is involved in the transformation of round bars into Bright bars. The short question involved is whether the appellants are entitled to credit on the duty paid on Bright bars used as inputs. According to Department the manufacturer who supplied the bright bars was not liable to pay d....

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....manufacture, the Department by Trade Notice No. 18/2003 dated 14/08/2003 had clarified that the process of making bright bars from wire rods amounts to manufacture. Duty was being collected upon bright bars and credit was being availed on such goods. A further trade notice dated 16/06/2004 was issued as clarification to trade notice No. 18/2003 stating that there is no process of manufacture. The ....

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....s therein (Joneja Bright Steel (P) Ltd & others) are entitled to avail credit on the excise duty paid on their inputs even though their final product bright bars is held to be not an excisable commodity. The Tribunal in that case has taken the view that as appellants have discharged the duty liability on their final product and availed credit on inputs, there is no justification to deny the credit....