2016 (2) TMI 591

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....c accumulators. The appellant procured semi finished and unformed batteries from their sister units and after receipt of these unformed / electrolytic accumulators they poured sulphuric acid in the batteries and charged upto specified gravity and cleared them as final product on payment of duty. The case of the Revenue is that the appellant is receiving batteries and selling them as batteries only. Therefore, the activity undertaken by the appellant does not amount to manufacture. Consequently, the appellant is not entitled to take Cenvat Credit on semi finished batteries received by them from sister units. Therefore, proceedings were initiated against the appellant to deny Cenvat Credit on their input. The matter was adjudicated. Demand wa....

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....manufacture as the character and classification of the impugned goods does not change by the activity undertaken by the appellant. Therefore, Cenvat Credit is rightly denied by the Adjudicating Authority. 5. Heard both the sides. Considered the submission. 6. In this case the short issue before us is: a) Whether the activity undertaken by the appellant on amounts to manufacture or not. Consequently, the appellant is entitled to take Cenvat Credit or not and / or; b) In case activity of the appellant does not amount to manufacture the appellant cleared their goods on payment of duty whether the same shall be treated as reversal of Cenvat Credit or not. 7. Following activity has been undertaken by the appellant semi....