2018 (6) TMI 121

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....ount of denial of Cenvat Credit along with interest and various penalties were also imposed on the appellants. 2. The facts of the case are that the appellants are engaged in the manufacture of Aluminium Alloy and Zinc Alloy Ingots. They were availing Cenvat Credit in respect of inputs. During the course of investigation, it was found that the appellants have availed ineligible Cenvat Credit on inputs of Rs. 82,43,377/- during the period 2004- 2005 and 2005-2006. There was a shortage of raw-materials at the time of stock taking of Rs. 1,20,446/-. During the course of investigation, it was found that the appellant has availed Cenvat Credit of Rs. 49,05,525/- on aluminium sheets procured from M/s.Alcon Foils Pvt. Ltd., and the reduction of....

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....A.K. Prasad, the Ld. Counsel for the appellants appeared before us and submits that the Cenvat Credit sought to be denied to the tune of Rs. 49,05,525/- on the process does not amounts to manufacture. It is his contention that as the process does not amount to manufacture but the appellant has cleared the goods on payment of duty. Therefore, the payment of duty shall amount to reversal of Cenvat Credit, therefore, the said demand of Rs. 49,05,525/- is not sustainable. 5. With regards to the invoice issued by M/s.Bharat Aluminium Co. Ltd., it is his contention that the vehicle numbers which has transported the goods from the supplier upto their godown and thereafter, the goods were shifted to another vehicle which transported the goods up....

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....Therefore, the Cenvat Credit cannot be denied. 9. On the other hand, the Ld. AR reiterated the findings in the impugned order. 10. Heard both sides and perused the records. 11. We find that Cenvat Credit of Rs. 49,05,525/- sought to be denied on the ground that the activity undertook by the appellant does not amounts to manufacture. Admittedly, these aluminium sheets have been cleared by the appellant on payment of duty. Therefore, the duty paid shall amount of reversal of Cenvat Credit. Therefore, Cenvat Credit cannot be denied to Rs. 49,05,525/- in the light of decision of the Hon'ble High Court of Bombay in the case of CCE Vs. Ajinkya Enterprises- 2013 (294) E.L.T. 203 (Bom.). Therefore, the said Cenvat Credit is allowed. 12.....