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2016 (4) TMI 685 - AT - Central ExciseDemand of duty and imposition of penalty - Whether the transfer of unutilized credit by the appellant who is the lessor, on lease of capital goods and factory building and on sale of inputs is in order - Sale of inputs as such and at the same time the factory and capital goods have been let on lease. Held that:- though there is no physical removal of such inputs, the admitted position is that there is a sale which would invite raising an invoice and which would necessitate payment of duty equivalent to the credit taken and the same could have been availed by the lessee to take credit. Therefore, whether there has been physical removal or not, fact remains that proper procedure has not been followed, though credit would have been available to the lessee. Hence, the issue is purely academic which cannot lead to raising of a demand by the Revenue as there is no loss to the revenue. The fact that the appellant lessor is a manufacturer utilizing the inputs and discharging on the final products is not under dispute. Therefore on purchase of the inputs, the lessee is entitled for the credit. Duty demand alongwith penalty under Rule 15 of the CENVAT Credit Rules is set aside. - Decided in favour of appellant
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