2009 (2) TMI 191

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....18-9-2003, Hon'ble Supreme Court in the case of M/s. Aman Marble Industries Pvt. Ltd. v. Collector of Central Excise, Jaipur - 2003 (157) E.L.T. 393 (S.C.), held that cutting of marble blocks into slabs did not amount to manufacture and no duty was leviable on marble slabs. (b) During the period from 1-4-2003 to 17-9-2003, the appellant has received certain capital goods like sawing machines used in converting blocks to slabs and taken 50% (Rs. 4,22,802/-) of the duty paid as cenvat credit. (c) Subsequent to the decision of the Hon'ble Supreme Court, the appellant stopped paying excise duty on the marble slabs. However, they had taken balance of 50% of the credit on the capital goods amounting of Rs. 4,22,802/- on 10-7-2004 and utiliz....

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....abs arising out of marble blocks treating the marble slabs as arising out of manufacture. Consequently, the assessee was paying duty on such marble slabs and was taking credit of duty paid on the capital goods. However, the decision of the Hon'ble Supreme Court dated 18-9-2003 invalidated the levy of excise duty on marble slabs. The decision holding that conversion of marble block to marble slab did not amount to manufacture laid down the law not only from 18-9-2003 but that was the law for the period prior to 18-9-2003. In other words, the levy of duty on marble slabs arising out of marble block was not legal. Similarly, the credit taken on the capital goods used in conversion of marble block to marble slab is also not legal. Under these c....