9911796707
TMI Blog2010 (6) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant's factory was visited by the Central Excise officers on 24-5-06, who conducted various checks and verifications. Statements of various persons including statement of Shri Bimalbhai R. Patel, Director of the Company was recorded wherein he deposed that they were mainly doing the manufacturing activity on job work basis for M/s. ITC Ltd. for confectionary products. For the said purpose, they have entered into Machine Hire Agreement with M/s. ITC Ltd., wherein the capital goods imported by M/s. ITC Ltd. have been installed in their factory premises, on which they have taken Modvat Credit of duty paid by M/s. ITC Ltd. To the similar effect is statement of Shri Tushar C. Patel, another director of the company. The details of Bills of E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit. Sub-rule 4(3) further extends the scope of availing credit even if the goods have been purchased from financing company. It is not the case that the capital goods must be purchased from the financing company. In support of their submission, they relied upon various decisions of the Tribunal. 4. The above contentions of the appellant do not stand accepted by the adjudicating authority, who passed the impugned order confirming the demand of duty of Rs. 1,42,78,588/- by denying the capital goods' Modvat Credit and also imposing penalties. The said order is impugned before Tribunal. 5.We have heard Shri B. Venugopal, learned Advocate for the Assessee and Shri S.K. Mall, learned SDR for the Revenue. 6. After carefully consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of capital goods is available in respect of the goods received in a factory at any point of time in a given financial year, subject to the condition that the amount does not exceed 50% of the duty paid on such capital goods in the same financial year. Sub-rule (3) of Rule 4 is to the effect that the Cenvat Credit in respect of capital goods shall be allowed to a manufacturer even if the capital goods are acquired by him on lease, hire purchase or loan agreement from a financing company. The expression used "even if in the said sub-rule is clearly indicative of the fact that the said sub-rule is extending the scope of availment of Modvat Credit in respect of those capital goods which are also acquired by the assessee from a financing company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived by the appellant from M/s. Hyundai Motors India Ltd. under Leave and Licence Agreement. The Commissioner has nowhere observed that M/s. Hyundai Motors Ltd. was a financing company. Similarly, in the case of M/s. Iljin Automotive Pvt. Ltd. v. CCE, Chennai as reported in 2004 (175) E.L.T. 169 (T), the benefit of Modvat Credit on capital goods which were lent by M/s. Hyundai Motors Ltd. under Leave and Licence Agreement was held to be admissible. Similarly, in the case of M/s. Maruti Udyog Ltd. v. CCE, New Delhi - 2004 (165) E.L.T. 226 (T), the Modvat Credit of credit of duty paid on capital goods imported by M/s. Maruti Udyog Ltd. and sent to M/s. Agro Engineering Works were held to be eligible, modvatable capital goods. To the same effe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
