By TIOL News Service

BANGALORE, MAR 30, 2017: REVENUE is in appeal against the order dated 06.08.2015 passed by the Tribunal.

The Tribunal had held thus -

"It is undisputed that the appellants were paying duty of excise on their final product by utilizing the CENVAT credit. As such, the question required to be decided is that irrespective of the fact that whether the activity of the appellant amounts to manufacture or not and when admittedly, the credit availed is being utilized for payment of duty of excise on the said activity, whether there would be any obligation on the part of the assessee to reverse the credit. Though the appellants have referred to various decisions of the Tribunal confirmed by the Hon'ble Bombay High Court, we find that all such decisions stands considered by the majority order of the Tribunal in the case of Asian Colour Coated Ispat Ltd., Vs. CCE - 2014-TIOL-2111-CESTAT-DEL wherein it stands held that when the CENVAT credit availed on the inputs stand utilized for payment of duty on the final product, there would be no requirement of reversal of the said credit even if the activity undertaken by the assessee does not amount to manufacture. By following the said decision, we set aside the impugned order and allow the appeal with consequential relief to the appellant".

The High Court extracted the decisions in Ajinkya Enterprises - 2012-TIOL-578-HC-MUM-CX and Creative Enterprises - 2008-TIOL-784-HC-AHM-CX and observed thus -

Concluding that in view of the cited High Court decisions, no question of law would arise for consideration, the appeal was held to be meritless and accordingly, dismissed.

(See 2017-TIOL-613-HC-KAR-CX)