2024 (10) TMI 815

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....ss alongwith direction for payment of equal penalty under Rule 14 & 15(2) of the CENVAT Credit Rules, 2004 read with Section 11A(5), 11AA and 11AC of the Central Excise Act, 1944 for the disputed period June, 2008 to March, 2013 that received confirmation by the Commissioner (Appeals), in the Orderin- Appeal noted above, is assailed by the Assessee-Appellant before this forum. 2. Fact of the case, in a nut shell, would go to show that Appellant was engaged in cutting, labelling and packing of goods like transmission belts, conveyers belt, trimming belts etc. and was clearing the same on payment of duty by treating the same as manufacturing of excisable goods. It had paid excise duty on final product for a cumulative amount of Rs.31,27,07....

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....ure for which Appellant had discharged excise duty liability on the same and duly availed the credits, which though was reversed after the audit objection. He further submitted that if Department takes a stand that it doesn't amount to manufacture then it was supposed to refund the duty paid which is higher by an amount of nearly Rs.5.5 lakhs of the credit availed and therefore, in no way Respondent-Department would be a gainer in the entire exercise. In placing reliance on the decision of the Hon'ble Bombay High Court in the case of CCE, Pune-III Vs. Ajinkya Enterprise reported in 2013 (294) ELT 203 (Bom) which has laid down the law in the field that 'once duty on final product has been accepted by the Department, CENVAT Credit availed....

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....t of the Hon'ble Supreme Court passed in the case of Commissioner of Central Excise, Chennai-II 2015 (322) ELT 418 (SC), he further argued that mere cutting of conveyor belt into smaller sizes would not amount to manufacture unless it would be shown that cutting had transformed the impugned product, for which he sought for no interference by this Tribunal in the order passed by the Commissioner (Appeals). 5. We have gone through the case record, relevant provision of law vis. a. vis. relied upon notification and judgments. At the outset, it has to be taken on record that w.e.f. 01.03.2003 certain goods undergoing packing, repacking, labelling, relabeling were to be considered as manufacture, even if it is not brought on record as to ....