COMMISSIONER OF C. EX., AHMEDABAD Vs. TAPSHEEL ENTERPRISES

JUDGEMENT

(1.) THIS is a departmental appeal against the order of Commissioner (Appeals) No. 7/2006(Ahd -I), dt. 5 -1 -2006, by which the order of original authority No. 36/AC/DA/2005, dt. 30 -8 -05 was set aside.

(2.) HEARD the both sides.

(3.) THE relevant facts, in brief, are as follows : (a) The appellant are manufacturer of S.O. dyes falling under heading 32.04.29 of Central Excise Tariff Act, 1985. They are availing Cenvat credit facility in respect of inputs going into manufacture of their final product. (b) It came to light that during May, 2004 to December, 2004, the appellant purchased S.O. dyes from others (the final product manufactured by the appellant is also S.O. dyes) and taken credit of duty paid on such finished products and subsequently cleared them for export. (c) The original authority held that the S.O. dyes purchased by them are not subjected to any manufacturing process and hence cannot be termed as an input and therefore demanded the credit availed amounting to Rs. 1,84,630/ - along with interest and imposed penalty of Rs. 1,84,630/ - under Section 11AC. (d) Commissioner (Appeals) held that Rule 16 permits any unit to bring any goods on which the leviable excise duty has been paid (even if their end product) and could be brought into factory (even if not manufactured by them) for being remade, refined, reconditioned or for any other reason and accordingly, allowed the appeal.