“6. From the facts noted hereinabove, it is apparent that the assessee had purchased the M.S. Drums from manufacturers. On the M.S. Drums so purchased by it the assessee had availed of CENVAT credit. The assessee sold the said M.S. Drums to purchasers without undertaking any manufacturing activity thereon. As such, the M.S. Drums not having been used as inputs for manufacture of final product, the assessee was not entitled to avail of CENVAT credit in respect thereof. However, as noted by both the Commissioner (Appeals) as well as the Tribunal, though the assessee had availed of CENVAT credit on the M.S. drums purchased by it, it had sold the same to buyers raising central excise invoices and had discharged central excise duty thereon. Thus, on the one hand, while the assessee was not entitled to avail of CENVAT credit on the M.S. Drums purchased by it, correspondingly there was also no obligation on it to pay central excise duty on the sale thereof as it had not carried out any manufacturing activity thereon. Thus, the entire exercise is revenue neutral inasmuch as though CENVAT credit had been wrongly availed, central excise duty had been paid on the goods in respect of which CENVAT credit had been availed.
