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2017 (5) TMI 745 - AT - Central ExciseCenvat Credit - Registration of new unit - Mangalam Grinding Unit (MGU) - manufacture of Cement - The appellant set up a second unit that is Mangalam Grinding Unit (MGU) within a distance of two Km from the Original Unit. When the MGU was nearly completed the appellant approached the department for including the MGU in the registration already granted to the Cement Manufacturing unit - denial of CENVAT credit in respect to new unit - The Cenvat credits are have been denied also for the reason that the credits have been availed prior to registration of the MGU - Held that: - There is no requirement in the Cenvat Credit Rules that prohibits a common Cenvat account for all the units comprised in one registration - there is no reason to deny the credit on capital goods availed for installing and setting up of MGU prior to grant of single registration. Denial of Credit also on the ground that the credits pertain to the period prior to the issue of a common registration on 31.01.2014 - Held that: - The stand taken by the adjudicating authority for denying the Cenvat credit on input services was not taken in the relevant Show Cause Notice and to this extent the Order-in-Original has travelled beyond the scope of Show Cause Notice, which is illegal - In any case the adjudicating authority has not given specific findings as to which are the input services for which credit has been availed and which get hit by the amendment in the definition of “Input Services” w.e.f. 01.04.2011 - denial of credit not justified. Denial of Cenvat credit amounting to about ₹ 1.3 lakhs in respect of inputs used in the generation of power supplied to MGU - Held that: - we find no reasons to deny the Cenvat credit by taking the view that the two units were separate prior to the date of common registration. In this view of things, we find no justification for denial of such Cenvat credit. Demand of duty on clinker cleared to MGU - Held that: - the two units have to be considered as a single factory with common registration, clearances of clinker from the main unit to MGU will be entitled to the Notification No. 67/95 available to captive consumption. Consequently, the demand on this ground also merits to be set aside. Appeal allowed - decided in favor of appellant.
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