TMI Blog2011 (7) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... r.P.G. Chacko, Mr. P.R. Chandrasekharan, JJ. For Appellant: Mr. Bharat Raichandani, Advocate For Respondent: Mr. K.M. Mondal, Consultant Mr. P.N. Das, SDR Per: P.G. Chacko 1. M/s Cipla Ltd and M/s Meditab Specialities Pvt Ltd (hereinafter referred to as the assessees) are the appellants in most of these appeals which are against denial of CENVAT credit of the excess amounts of duty paid on their inputs by the manufacturers/suppliers of the inputs. For instance, in Appeal No. E/1407/2007 filed by one of the assessees, the challenge is against denial of CENVAT credit amounting to Rs 1,52,84,200/- on inputs manufactured and supplied by their sister units. The sister units at Bangalore and Kurkumbh manufactured bulk drugs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd payable as per the finalized assessments) was sought to be denied to the assessee (Patalganga unit). In adjudication of the show-cause, the Commissioner of Central Excise disallowed the credit to the assessee and ordered its recovery under Rule 12 of the CENVAT Credit Rules with interest under Section 11AB of the Central Excise Act. Penalty equal to duty was also imposed by the adjudicating authority. Similar orders were passed by the Commissioner against certain other units of M/s Cipla Ltd also on similar sets of facts. Hence the appeals of M/s Cipla Ltd. 2. Appeal No. E/1412/07 was filed by a functionary of the company against the penalty imposed on him. 3. Appeal No E/1045/08 filed by the other assessee viz M/s Meditab Specia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem under Rule 25 ibid. An appeal filed against the Order-in-Original was dismissed on merits by the Commissioner (Appeals). Appeal E/1045/08 of M/s MSPL is directed against the Appellate Commissioner s order. 3. M/s MSPL had also availed CENVAT credit of Rs 1,66,098.26 on their inputs (bulk drugs) which were received from M/s Cipla Ld (input manufacturer) during the period from 01-02 to 03-04. The credit was of the duty provisionally paid by M/s Cipla Ltd under Rule 7 of the Central Excise Rules. When their provisional assessments were finalized by the proper officer of Central Excise, it was found that the amount of duty paid by them was higher than what was leviable on the goods cleared to M/s MSPL. Subsequently, in a show-cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein their Lordships upheld the view taken by this Tribunal, quoted below: Reasons given by the appellants for the alleged inflation of the value of the intermediate goods are logical. What was required of the Commissioner was to examine the quantum of the loading of the assessable value by the Modvat credit on the earlier inputs. That exercise has nowhere been done. If the department was of the opinion that the value of the final product was depressed, then they could have charged, the Jalgaon unit with under-invoicing of their product. That has also not been done. The valuation as given by the Sinnar unit was duly approved by the department and the payment of duty was also duly accepted. We find absolutely no substance in the attempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit by the appellant to the extent of duty actually paid by the input supplier is not correct and the credit could have been availed to the extent of duty required to be paid by the input supplier. We find that the issue is no more res-integra and stand decided by various decisions of the Tribunal Reference in this regard is made to Tribunal s judgment in case of M/s Hero Cycles Ltd vs CCE, Chandigarh as reported in 2003 (54) RLT 764 (CEGAT-Del), as also in the case of CCE Chennai vs CEGAT Chennai 2006 (202) ELT 753 (Mad), CCE vs Jyoti Ltd. 2008 (223) ELT 171 (Guj), Evergreen Engineering Co Pvt Ltd vs CCER Mumbai 2007 (215) ELT 134 (Tri-Mumbai). 3. The ratio of all these decisions is that the credit cannot be varied at recipient s end o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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