2023 (6) TMI 1536

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.... India Ltd (TCIL) on payment of duty in their Cold Roll Mill and carried out the process of 'galvanization'. The appellant availed Cenvat Credit of the duty paid on the coils received from TCIL and utilized the same for making payment of duty on galvanised products. 2. On 09.11.2011 a show cause notice was issued to the appellant by the Commissioner alleging that the availment and utilization of Cenvat Credit was wrong since the full hard rolled coils (hereinafter referred to as the "said goods") were used in the process of 'galvanisation', which process did not amount to "manufacture" within the meaning of Section 2(f) of the Act and, hence, the coils were not "input" within the meaning of Rule 2(i) of Cenvat Credit Rules. The show caus....

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....records. 6. We observe that the issue involved in this appeal is regarding eligibility of availament of Cenvat credit on the inputs when the process undertaken on the inputs does not amount to 'manufacture' within the meaning of Section 2(f) of the Central Excise Act. The Appellant cited Rule 16(2) of the CENVAT Credit Rules and contented that as per Rule 16(2), when the process undertaken on the inputs on which Cenvat credit has been availed, does not amount to manufacture, then they have to only reverse equal amount of credit the availed on the inputs. However, in this case they have added the cost of galvanization and paid duty on the galvanized product, which is much more than the credit availed. For ready reference the said Rule ....

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....de, refined, re-conditioned or for any other reason . After receipt of the goods, the assessee is entitled to take Cenvat credit of the duty paid as if such goods are received "as inputs under the Cenvat Credit Rules" and utilise the credit according to the said Rules. In the instant case there is no dispute that the said goods were cleared by TCIL upon payment of duty. Therefore, the Appellant was eligible to take Cenvat credit of the duty paid on the said goods as if such goods were received as 'inputs' under the Cenvat Credit Rules and utilise this credit according to Rule 3 (4) of the Cenvat Credit Rules. 8. Rule 16(2) of the said Rules provides that if the process for which the goods received in the factory does not amount to 'manuf....