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2019 (7) TMI 1619 - AT - Central ExciseCENVAT Credit - credit of additional duty of customs - duty paying invoices - denial of credit on the ground that cenvetable invoices to the appellant did not mention the particulars of import documents against which the supplier has availed Cenvat credit and used the same for payment of duty on the auto parts supplied by them to the appellant - period from April 2010 to January 2015 - recovery of credit along with interest and penalty - HELD THAT:- The Adjudicating Authority asked the Jurisdictional Assistant Commissioner to undertake a verification of the invoices produced by the appellant to ascertain as to whether the invoices issued by the car manufacturer namely M/s Honda Cars India Ltd. on the strength of which Cenvat credit of additional duty of customs was availed by the appellant were proper documents or not, in the light of the provisions contained under Rule 11 of the Central Excise Rules, 2002 and Rule 3 (5) of the Cenvat Credit Rules, 2004. The Jurisdictional Assistant Commissioner was also asked to get the necessary verification done from the concerned Assistant Commissioner/Deputy Commissioner of the CGST Division having jurisdiction over the supplier of the goods namely M/s Honda Cars India Ltd. and to report whether the removal of the goods by M/s Honda Cars India Ltd. covered by these invoices were imported goods and duty passed on by them were in accordance with the Rule 3 (5) of Cenvat Credit Rules, 2004. There is no denial of the fact that the supplier of the components/parts to the appellants have imported the same on payment of countervailing duty and the supplier M/s Honda Cars India Ltd. has taken credit of the ADC which was being paid by them at the time of import. These components/parts have been cleared by M/s Honda Cars India Ltd. to the appellant on payment of central excise duty leviable on such components/ parts by debiting the same from the credits of the ADC paid by them at the time of import - It has been verified by the Jurisdictional Assistant Commissioner having jurisdiction over M/s Honda Cars India Ltd. that credits has been availed as per the legal provisions and same has been utilized for payment of central excise duty when inputs or capital goods are removed as such. The invoices on the strength of which the components/parts were cleared to the appellant by M/s Honda Cars India Ltd. have mentioned that “invoice for removal of excisable goods from a factory or warehouse on payment of duty under Rule 11 of Central Excise Rules readwith Rule 3 (5) of Cenvat Credit Rules, 2004. There is complete transparency from both side that is, from the supplier side and on the part of the appellant, on supply of inputs and their utilization as well as in availing of the Cenvat credit and its further utilization - there are no merit in the conclusion which has been reached by the Adjudicating Authority while denying the Cenvat credit to the appellant. Appeal allowed - decided in favor of appellant.
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