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2016 (12) TMI 1211 - CESTAT NEW DELHICENVAT credit - closure of factory - cenvat credit and finished goods transferred to Dharuhara unit - removal of scrap and discard of capital goods - manufacture of Industrial Gases namely, Nitrogen and Oxygen - Held that: - I find that the additional documents, with regard to scrap and discard of capital goods, produced before the Tribunal was not produced before the authorities below. Since the documents have to be verified at the original stage, I am of the view that the matter can be remanded to the Original Authority for verification of the documents/ records - If the original authority is satisfied that records/documents are proper, then he should allow the cenvat benefit and drop the duty demand. The submissions of the appellant that cylinder valves were procured during the period 2007-2008 on which cenvat credit has not been taken, is not appreciated at this juncture for the reason that no documents were produced to show that the valves cleared during the disputed period were procured prior to 2007-2008 and no Modvat/ Cenvat credit has been taken by the appellant. Since interest is compensatory in character, and in view of the fact that there is no loss of Revenue, I am of the opinion that confirmation of interest of ₹ 2,26,704/- and penalty of ₹ 500/- is not proper and justified. Thus, appeal filed against such demand is allowed and the impugned order is set aside. As regards the issue of passing the cenvat credit to the customers under cenvatable invoices issued by the dealer, I find that the appellant is registered under Central Excise Department both as a manufacturer as well as a first stage dealer. Since, the invoices were issued by the first stage dealer to the buyesr of the goods, and the said goods are not co-relatable with the goods manufactured by the appellant as a manufacturer, in my opinion, credit cannot be disallowed on the cenvatable invoices issued under the dealer registration certification. Appeal disposed off - matter on remand.
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