2016 (12) TMI 909

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....xcise Tariff Act, 1985 respectively and were availing the Cenvat Credit facility. They clear the manufactured products either for home consumption on payment of duty or for export along with the bought out items in the form of 'Cable Jointing Kits'. Some of the bought-out items like tubings, FRP Rods, Adhesive, Mastic tapes etc. are cleared as insulating fittings under sub-heading 8547.00. The contention of the Revenue is that this removal of bought-out items does not undergo any change and no process amounting to manufacture takes place. Therefore the cable jointing kits are not excisable, hence on the bought-out items, the cenvat credit cannot be allowed for the reason that the same was not used in the manufacture of final product. The ad....

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....rch 2004. The issue to be decided is whether the activity of bought out items cleared as cable jointing kits is a manufactured goods, and if not whether the Cenvat Credit on the bought out items is admissible for non manufacturing activity. In this regard, we are of the view that Rule 16 of the Central Excise Rules is directly relevant to the fact of the present case which is reproduced below:- Rule 16. Credit of duty on goods brought to the factory. - (1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT cred....