TMI Blog2013 (12) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... iary to procure goods and supply to 100% EOUs, thereby stripping CENVAT credit available on the goods for the use by appellants – Following Lakshmi Automatic Loom Works Ltd. Vs Commissioner of Central Excise, Trichy [2008 (10) TMI 57 - CESTAT CHENNAI] – credit was to be reversed – Thus, the applicant directed to pre-deposit a sum of Rupees Fifteen Lakhs as pre-deposit – upon such submission rest o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s showing reversal of credit taken at the time of procurement of the parts. However, while supplying such spares to 100% EOU the applicant was not reversing the credit taken. 2. Revenue was of the view that the applicant had to reverse CENVAT credit on such goods under Rule 3(5) of the CENVAT Credit. Rules, 2004. Based on such reasoning, two show-cause notices were issued for the period 28.06.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent was accepting that they are doing manufacturing activities on these spares. According to write up from Chartered Engineer given such goods were,- "O" Rings made out of various rubber compounds Rod wiper Gaskets made out of various metallic and non-metallic materials Seal rings Pressure Guages Packing set made out of non-metallic materials Positi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hence, the activity is not manufacture. The applicants are only an intermediary to procure goods and supply to 100% EOUs, thereby stripping CENVAT credit available on the goods for the use by appellants. The Larger Bench of the Tribunal examined the issue whether CENVAT credit is to be reversed in such a situation in the case of Lakshmi Automatic Loom Works Ltd. Vs Commissioner of Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l and decision given in favor of Revenue. Therefore, we direct the applicant to pre-deposit a sum of Rs.15 lakhs (Rupees Fifteen Lakhs only) for admission of the appeal, within a period of six weeks from today. Subject to pre-deposit of the same, there shall be stay of collection of balance adjudged dues arising from the impugned order. 9. To report compliance on 22.05.2013. (Dictated and pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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