TaxTMI 
TaxTMI 
2018 (5) TMI 1291
X X X X Extracts X X X X
X X X X Extracts X X X X
....der Chapter Heading 39 of the Central Excise Tariff Act, 1985. They had availed the cenvat credit of the duty paid on the raw materials/ inputs under the provisions of Cenvat Credit Rules, 2004 (herein after referred to as "CCR"), They had availed cenvat credit of the duty paid by M/S. Pan Synthetics Private Limited (herein after referred to as 'PSPL" ) on the slit metalized polyester films, BOPP file etc. A Show Cause notice was issued to appellant alleging that the activity of slitting the plastic film rolls done by M/s.PSPL did not amount to be manufacture and therefore M/s.PSPL have ceased to be manufacturer. The notice further alleges that the invoices issued to the appellant by M/S. PSPL were not proper documents as envisaged unde....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s paid the duty or not. He further submitted that the appellant has rightly taken the credit as per Rule 4 of CCR. He also submitted that M/s. PAN Synthetics Pvt. Ltd. has supplied the material to many other manufacturers, out of which two other manufacturers were also served with show-cause notices where the Department proposed to deny the CENVAT credit availed on such invoices. However in one such case of M/S. Lakshmi Enterprises which pertains to the same commissionerate. The Department eventually dropped the demand and he has placed on record the decision of the Deputy Commissioner dropping the demand. He also submitted that in another case of M/s. Universal Products relating to CENVAT credit on the invoice of M/s. PAN Synthetics, the o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s regard supplier being manufacturer or not, Tribunal in the case of Commissioner Vs. Deepti Formulation Pvt. Ltd. - 2012(286) ELT 396 (T) held that when the supplier of inputs paid duty thereon and issued a valid invoice. Inputs so received in assessee's factory were used in manufacture of finished product, the assessee was entitled to take credit of duty paid on inputs and question whether inputs had arisen out of a process of manufacture is irrelevant. 11. It is also seen that from suppliers end the Department has collected duty which is sought to be denied as credit at assessee's end, without refund at suppliers end. 12. Based on the above discussion and the rulings above the credit availed by the appellant cannot ....