2018 (2) TMI 219

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.... that did not amount to manufacture. Penalty of like amount has also been imposed under rule 15 of the CENVAT Credit Rules, 2004 read with section 11AC of the Central Excise Act, 1944. 2. Heard Learned Counsel for appellant and Learned Authorised Representative. 3. While Learned Counsel refers to the decision of this Tribunal in Uttam Galva Steels Ltd v. Commissioner of Central Excise, Raigad [2016 (336) ELT 81 (Tri.Mumbai)], Learned Authorised Representative placed reliance on the decision of the Hon'ble High Court of Bombay in Mahindra & Mahindra Ltd v. Commissioner of Central Excise, Mumbai V [2015 (321) ELT 51 (Bom.)] wherein it has been held that "56. If the exemption was unconditional, then, the petitioners /assessees c....

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....olute but conditional and that being found to be baseless, the Tribunal was in no error in confirming the demand partially." 4. The issue before the Hon'ble High Court of Bombay in re Mahindra & Mahindra Ltd was the discharge of duty liability on goods were known to be exempt unconditionally by notification, whereas, in the present dispute, as well as in the decision cited by the Learned Counsel, the duty liability was discharged in the belief that the goods were liable to duty, as indeed these were at one time, as deemed manufacture. In identical circumstances, the matter decided by the Tribunal referred to supra has taken into consideration the decision of the Hon'ble High Court of Bombay to arrive at the conclusion that "7.1 ....

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....clarified only on 24-6-2010. In the case of Resistance Alloys (supra) and P.V. Sanghvi (supra), wherein it was held that process of pickling and oiling would not amount to manufacture, but in the case in hand before us, the appellants were undertaking composite activity of de-coiling of HR/CR coils thereafter cutting and slitting into specific sizes and after that pickling and oiling taken place, which was clarified by the department only on 24-6-2010 saying that the said activity does not amount to manufacture. Therefore, following instructions issued through Circular No. 911/1/2010-CX., dated 14-1-2010, the appellants approached to the Commissioner for issuance of appropriate rectification for regularization of the CENVAT credit availed a....