2019 (9) TMI 1051

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....ue, we note that the appellants are engaged in the manufacture of Forged Blanks of stainless steel of non alloy steel and Forged Blanks of alloy steel. Similarly, flanges of non-alloy steel, stainless steel are also being manufactured by them. 2. Proceedings, were initiated against them by way of issuance of show cause notice dated 19.02.2015, based upon the audit objections proposing denial of Cenvat credit of Rs. 11,49,576/- on the ground that the activities undertaken by them do not amount to manufacture and as such the appellant is not entitled to avail the Cenvat credit. Further, demand of duty to the extent of Rs. 84,29,767/- was proposed to be confirmed on the allegations that the entire goods sold by them on payment of duty applic....

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....Central Excise reported as 2015 (317) ELT 538 (Tri-Del.) it was held that where the final product stands cleared on payment of duty, the Cenvat credit availed by the assessee cannot be denied on the ground that the activity was not covered by the definition of manufacture. As such, we find no justification for confirmation of said demand. 5. Further, demand of Rs. 84.29 lakhs stands confirmed on the allegations and findings of clandestine removal which is solely based upon the duty paid by the appellant on the scrap arisen in their factory. As explained by the learned Advocate, since the appellant was manufacturing their final products of different variety i.e. stainless steel, alloys steel as also non alloy steel, scrap of different veri....