TaxTMI 
TaxTMI 
2017 (10) TMI 204
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.... paid biscuits of various brands such as, Krack Jack, Hite & Seek Choco, Parle G 15 Gm from different vendors of Parle products under Central Excise invoices on which they have availed Cenvat Credit to the tune of Rs. 90,75,836/- and utilized this credit for clearance of goods for export under the scheme of rebate. The said duty paid goods, i.e. finished products brought in packed condition and after stuffing in the container cleared for export. The case of the department is that since the appellants availed the Cenvat Credit on finished products, i.e., biscuits and while exporting no manufacturing activity has been undertaken the Cenvat Credit under the provisions of Rule 2 of Cenvat Credit Rules, 2002 is not admissible on the ground that ....
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....n was made for allowing the credit on the duty paid goods received in the factory of the assesee, the Revenue cannot resort to general provisions of Cenvat Credit Rules, 2004 for dis-allowing the credit. In support, he placed reliance on the following judgements: a) Sarene Labs - 2005 (188) ELT 290 (T) b) Tapsheel Enterprises - 2007 (216) ELT 284 (T) c) Bala Handlooms Exports - 2008 (223) ELT100 (T) d) Bharat Pulverising Mills - 1997 (96) ELT 716 (GOI e) CBEC Cir.No.283/117/96-CX dated 31/12/1996 3. On the other hand, Shri Ajay Kumar, Ld. Additional Commissioner (AR) appearing on behalf of the Revenue reiterates the findings in the impugned order. 3.1 He further submits that it is a basic law that for allowing the Cenva....
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....der the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules. (2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be. Explanation: The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by a manufacturer who removes the goods. (3) If there is any difficulty in following the prov....
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....1) of Rule 16, it is provided that not only for the process of re-made, refined, reconditioned but the duty paid goods can be brought into the factory for any other reason. In the facts of the present case, the appellants have brought the duty paid goods from various vendors and the same were repacked as per the requirements of export and goods were exported, even though the activity was not amount to manufacture, they have discharged excise duty. Therefore, in our view, the appellants have complied with the provisions of Rule 16 (1) and (2). 4.2 We have gone through the judgements cited by the rivals. In the case of Serene Labs (supra) that the Cenvat Credit was allowed, even though the same was proposed to be denied on the classificati....