2023 (4) TMI 311

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....2008 they have received unprocessed Ferro Silicon cake on payment of central Excise duty and carried out the activities of grinding, sizing and packing, in the factory. It is the allegation of the Revenue that since these processes of grinding, sizing and packing of Ferro Silicon cakes does not amount to 'manufacture' , CENVAT Credit availed on the said input was incorrect and accordingly not admissible to them. 2. The Appellant stated that during that period they got good orders for the supply of Ferro-Silicon which they could not produce at their own manufacturing unit due to power disruption, scarcity of raw materials and labour problems .As they have to supply the goods to their customers in a specified time-bound schedule, they brou....

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....rred to the decision of the Hon'ble Gujarat High Court in the case of Commissioner of Central Ex. & Cus., Surat-III vs. Creative Enterprises - 209 (235) ELT 785 (Guj.) which was followed by the Mumbai Bench of this Tribunal in the case of Brom Chem (India) Pvt. Ltd. vs. CCE, Belapur - 2012-TIOL-614-CESTAT-MUM and also the decision of the Hon'ble Delhi High Court in the case of A One Laminators Pvt.Ltd. vs. CCE - 2012 (276) ELT 172 (Del.). The Tribunal in the case of Bajaj Tempo Ltd. vs. CCE-1999 (106) ELT 145 (MUMBAI-CEGAT) held that the credit cannot be denied on the ground of technicality, if the duty paid nature of goods is established. The Hon'ble Gujrat High Court in the case of CCE vs. Brom Chem India Pvt.Ltd. - 2009 (235) ELT -785 (G....

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....manufacture' as per section 2 (f) of the CETA1944. In the present case, the ferro silicon cake received in the factory were bigger size . Without undertaking the processes of sizing, grinding and packaging they cannot be marketed as such. The customers may require it in different sizes. Hence sizing of the Ferro Silicon cake according to the requirement of each customer is an activity amounting to 'manufacture' as per section 2 (f) of CETA, 1944. We also find that the Department has not questioned the payment of duty on the said finished goods cleared by them after undertaking the process of sizing and grinding and packaging. 8. In support of their contention, the Appellant cited the decision of the Hon'ble Tribunal in the case of Bajaj ....