2018 (11) TMI 490

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....l, Advocate for appellant Shri VK Agarwal, Additional Commissioner (AR) for respondent ORDER Per: C J Mathew M/s Akzo Nobel India Ltd (formerly M/s ICI Ltd) is in appeal against the denial of CENVAT credit of Rs. 1,74,42,635 availed by them on duties of central excise paid on procurement of 'speciality polymers' that were to re-packed and re-labelled before removal on payment of approp....

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....ebit of CENVAT credit account. The impugned order has directed recovery of the credit availed as ineligible owing to the process not yielding any manufactured goods and as the 'inputs' have not been received in the factory of production. 3. Without going into the issue of whether re-packing and relabelling of 'speciality polymers' amounts to manufacture, it is seen from the records that there i....

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.... as per Rule 3(5) of the Cenvat Credit Rules, 2004, if the activity in question of the appellants does not amount to manufacture, the appellants are required to pay duty equal to credit taken on clearance of such inputs under cover of Central Excise invoices. As in this case, the activity of the appellants does not amount to manufacture, therefore, these inputs are cleared as such. In that event, ....

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....er Forgings (supra), SAIL (supra), M.P. Telelinks Ltd. (supra), Creative Enterprises (supra) which was upheld by the Hon'ble Apex Court that once duty on final products has been accepted by the department in the case, CENVAT credit cannot be denied even if the activity does not amount to manufacture. 12. Therefore in view of the above discussion, we find that the duty paid by the appellants has....