Order Date – 22 February 2024

Parties: M/s Sandeep Laminators Pvt. Ltd. Vs The Commissioner of Central Excise, Delhi-III

Facts –

• The Appellant, M/s Sandeep Laminators Pvt. Ltd., are engaged in the manufacture of ‘Plastic Laminates’. The appellants are availing CENVAT credit on capital goods and inputs under Rule 3 of CENVAT Credit Rules, 2004.
• Two show cause notices were issued disallowing the CENVAT credit alleging that laminating/ metallising of duty paid does not amount to manufacture as no new and distinct products comes into existence.

Issue –

• Whether CENVAT credit is available on laminating/ metallising of duty paid?

Order –

• The Tribunal observed that the issue involved in the present case is no more res integra and has been consistently held by various decisions of the Tribunal, upheld by the Hon’ble Supreme Court and High Court that when process undertaken by the assessee does not amount to manufacture, even then the CENVAT credit is admissible if such inputs are cleared on payment of duty which would amount to reversal of credit availed.
• In view of the ratios of various decisions and by following the ratio of the said decisions, it was held that the impugned order is not sustainable in law and the appeal is allowed.