TMI Blog2010 (6) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for removal of inputs to a third party (different legal entity), no legal sanctity for denying concession to another unit of same legal entity. Payment of job charges cannot be criteria for levy or exemption from excise duty. Assessee’s appeal allowed. - E/630-631/2006 - A-373-374/KOL/2010 - Dated:- 2-6-2010 - S/Shri S.S. Kang, Vice-President and M. Veeraiyan, Member (T) REPRESENTED BY: Shri B.N. Chattopadhyay, Consultant, for the Appellant. Shri R.K. Chakraborty, SDR, for the Respondent. [Order per: M. Veeraiyan, Member (T)]. - These Appeals are against the order No. 69/Commr./CE/Kol-II/Adjn./2006-07 dated 27-9-2006 of the Com missioner. 2. Heard both sides. 3. Relevant facts in brief are that the Appellants are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould to pay and that duty and that the duty should be paid on value ascertained in terms of Rule 8 of the Central Excise Valuation Rules, 2000. Accordingly he confirmed demand of Rs. 84,14,653/- (Rupees Eighty Four Lakhs Fourteen Thousand Six Hundred and Fifty Three only) along with interest. He imposed penalty of equal amount under Section 11AC read with 173Q(1)(a) of Central Excise Rules, 1944 and Rule 25 of Central Excise Rules 2001 and Central Excise Rules, 2002. He also imposed penalty of Rs. 5,00,000/- (Rupees Five Lakhs only) on Shri V.N. Upadhyay, Managing Director of the Appellant company. 4. Learned Consultant on behalf of the Appellant-assessee submits that they have intimated the jurisdictional Central Excise authorities abou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2008. 6. Learned S.D.R. reiterates the findings of the Commissioner. He submits that the sister unit cannot be considered as a job-worker as no payment of job charges are involved. 7. We have considered the submissions made from both the sides and perused the records. We find that the CENVAT Credit Rules permit "manufacturer" to take credit of duty paid on inputs/capital goods. The four units are different units of the same company and, therefore, they are same manufacturer as a legal entity. However, for the purpose of excise law each of the unit is required to register separately and discharge their duty liability when the goods are re moved from the respective units. In fact captive consumption of goods manufactured in any unit used ..... X X X X Extracts X X X X X X X X Extracts X X X X
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