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2018 (7) TMI 1927 - AT - Central ExciseCENVAT Credit - credit denied on the ground that goods had not been manufactured and cleared from the factory of Ishaan Technologies Private Limited - Rule 7(1) of the Cenvat Credit Rules, 2002 - HELD THAT:- The instant proceeding is a consequence of investigation initiated by DGCEI authorities against Ishaan Technologies Private Limited, Byrnihat, Meghalaya and simultaneously against all the units of Manaksia Limited, including the appellant and its associates/sister concerns and that on the basis of the evidences on record, similar show cause notice was issued to the Kutch unit of Manaksia Ltd. at Gujarat alleging wrong availment of cenvat credit - Hon'ble Gujarat High Court in the case of Commissioner of Excise and Customs Vs. Manaksia Limited [2010 (4) TMI 1046 - GUJARAT HIGH COURT] has held that even if the alternator may have been manufactured at Delhi as contended by the revenue, as long as the duty liability of such alternator had been discharged by the supplier, entitlement of the respondent company to avail of CENVAT credit in respect of the duty paid on the capital goods in question cannot be disputed. In the instant case also there is no dispute that the subject machineries were received at the appellant’s factory at Barjora, Bankura, West Bengal. It is also not disputed that the duty on the said machineries stands paid by Ishaan Technologies Private Limited and that the goods were received under the cover of Central Excise invoices issued by the said company. It is also not the case of the Revenue that the appellant had availed higher credit than the duty actually paid as reflected in the duty paying documents. In such circumstances, as held by the Hon'ble Gujarat High Court, the requirement of Rule 7(1) of the Cenvat Credit Rules, 2002 stands duly satisfied - the appellant’s entitlement to avail Cenvat credit in respect of the duty paid on the subject goods is legal and valid and cannot be denied. Appeal allowed - decided in favor of appellant.
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