We are sharing with you an important judgement of the Hon’ble Customs, Excise and Service Tax Appellate Tribunal of Bangalore (the CESTAT) in the case of the CCE Vs. M/s Amar Roto Prints [2013-TIOL-926-CESTAT-BANG] on following issue:
The Hon’ble CESTAT held that Cenvat credit on inputs used in a process not considered as manufacture by the Department cannot be disallowed by relying on the following judgments wherein it has been held that the CENVAT credit taken on inputs used in the manufacture of finished goods is not liable to be disallowed on the ground that the process in which the inputs were used did not amount to ‘manufacture’:
The Hon’ble CESTAT further held that no duty can be demanded under Section 11D of the Excise Act. The Hon’ble Tribunal observed that Section 11D of the Excise Act can only be triggered where excise duty is collected from the buyer but not deposited with the Central Government. The Respondent had paid duty on their finished products. Naturally, the Company collected this duty from their customers. The Department is asking the Company to remit such collections also to the Government under Section 11D of the Excise Act. Indisputably, the Respondent paid duty on their finished goods and hence there is no question of a second payment of the same duty to the Central Government under Section 11D of the Excise Act.
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