Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 101 - AT - Central ExciseDenial of cenvat credit - inputs and capital goods sent to job-worker for further processing and the inputs sent directly to job-workers for further processing - Held that:- As regards inputs and capital goods sent to job-worker and not received within 180 days, find that the learned counsel was correct in bringing to notice that the appellant had prepared challans for movement of inputs, partially processing inputs and capital goods as provided under Rule 4(5)(a) of the Cenvat Credit Rules. The said challans indicate clearly that the goods were sent to Himachal Pradesh unit and received back by the appellant within 180 days as mandated in the said rule. These documents were produced before the first appellate authority, as well as the adjudicating authority but the adjudicating authority did not take cognizance of the said documents. Tribunal being the last fact finding authority, after considering the documents which are produced thus hold that they indicate that the inputs and capital goods were received back within 180 days from the clearance to the job-worker. Provisions of Rule 4(5)(a) of Cenvat Credit Rules are fully satisfied and the impugned order to that extent is correct. As regards the inputs sent directly to job-worker for manufacture of final products, on a careful reading of the proviso to the said Rule 4(5)(a)(1) it contemplates that the appellant has to evidence that the inputs delivered directly to the job-worker are received back from the job-worker and accounted in his records. On a specific query from the bench, the learned counsel was unable to bring on record or show from the record that the respondents had prepared any challan for movement of inputs under the provisions of Rule 4(5)(a) of Cenvat Credit Rules, for the goods delivered directly nor is he able to show from records that the inputs delivered directly to the job-workers premises were received back within 180 days. Thus in the absence of any evidence to support the case, it has to be held that the said cenvat credit availed on such inputs delivered directly is incorrect and needs to be demanded from the respondent. Allow the appeal of the Revenue on this issue by upholding the order-in-original and confirming the demand of ₹ 5,20,872/- + education cess of ₹ 1,400/- along with interest. Penalty imposed on the respondent are unwarranted
|