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2014 (6) TMI 62 - AT - Central ExciseWaiver of pre depsoit - CENVAT Credit - sending goods on Job work without receiving the goods in factory premises - inputs marked for another unit - Penalty under Rule 15 - Held that:- Prima-facie, we find that the Assessee is given facility of sending the inputs out and out to the job workers without receiving the same in their factory for certain processes so as to same expenditure on account of transport charges. In the present case, the Applicants have not followed the prescribed procedure, even though, they have purchased un-slitted coils of 1260 mm from M/s SAIL and before receiving the same in their factory, sent to the job workers for slitting it into different sizes so as to make it suitable for its use in the factory for further manufacture. Prima-facie, we find that at the time of slitting of the coils, the Applicants themselves were aware of the fact that some slitted coils cannot be used in the Garia factory, where the cenvat credit were to be taken, but to be used at their Falta Unit meant for export. Prima-facie, we also find that subsequent clearances of the slitted coils meant for Falta Zone, were not unloaded in the factory and consequently, not in accordance with law and the procedure laid down under the Cenvat Credit Rules, 2004, namely, Rule 4 (5)(a) of the said Rules. At this stage, it is difficult to appreciate that whether the procedures followed by the Applicants are leading to revenue neutral situation or otherwise. Hence, in our opinion, the Applicants are not able to make out a prima-facie case for total waiver of predeposit - Conditional stay granted.
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