Order Date: 16 August 2022

Facts-

• The Appellant, M/s Kiswok Industries Private Limited is engaged in the manufacture of excisable goods viz castings and cast articles of iron, pipe fittings etc. falling under Central Excise Tariff on which applicable central excise duty is being paid.
• The Appellant availed Cenvat Credit on M.S. rod cuttings supplied by M/s.Indo Thai Flexible Tubes Ltd (supplier). 
• The Department entertained a view that the supplier i.e., the consignor of the said goods did not undertake any manufacturing activity and hence was not liable to charge and pay central excise duty. 
• A show cause, followed by the Impugned Orders, issued to deny the Cenvat Credit availed by the appellant on the strength of invoices issued by the aforesaid supplier.

Issue-

• Whether the goods received by the Appellant are manufacture product and whether the duty was rightly charged by the supplier?

Order-

• The Tribunal observed that in the present case the jurisdictional Commissioner of the said vendor has dropped the entire proceedings which has been duly upheld by the Tribunal as well as the Hon’ble High Court. Therefore, there is no reason to deny the claim of Cenvat Credit in the hands of the Appellant who is the recipient of the impugned goods from the said manufacturer.
• Further, the legal position already stands decided in favor of the Appellant that Cenvat Credit cannot be denied on input on the ground that the activity undertaken by the assessee does not amount to manufacture when the assessee has admittedly deposited output duty on the final product.
• The Tribunal held that the impugned Order passed by the Ld. Commissioner cannot be legally sustained and hence the impugned order is set aside and the appeal is allowed with consequential relief.