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2013 (5) TMI 4 - CESTAT AHMEDABADViolation of Central Excise procedures - CENVAT credit denial - case of the revenue that manufacturing of DG Sets was being carried out in the factory premises of Appellant No. 1, whereas the Central Excise registration was taken at the name and address of appellant No.2 - as per dept. entire Central Excise duty due on the finished goods has been discharged by the appellants - Held that:- It is clear from the facts that Appellant No.2 was having a very small area in the registered premises which was not sufficient for any manufacturing/ storage activity. During investigation also the premises of Appellant No.2 was visited but neither the finished goods nor raw materials were found present. All the manufacturing activities and the records of Appellant No.2 were being maintained at the factory premises of Appellant No.1. There is nothing on record to show that any goods manufactured at the premises of Appellant No.1 were not made out of raw materials received in the name and address of Appellant No.2. It is established from the above observations that Appellant No.1 and Appellant No.2 have not followed the Central Excise procedures but the inputs have been completely used in the manufacture of final products which are cleared on payment of duty. It is settled law that for failure to follow the procedures, cenvat credit cannot be denied - thus cenvat credit with respect to inputs received in the name and address of Appellant No.2 is admissible to the Appellant No.1 from where the manufactured goods were cleared on payment of duty - no further duty liability is attracted from the appellants once the duty of the finished goods is discharged - enalties imposed upon the appellants under Section 11AC, under Rule 15, Rule 25 & personal penalty upon Shri Manoj C. Phutane, Managing Director are required to be set-aside.
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