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2015 (6) TMI 224 - CESTAT CHENNAI

2015 (6) TMI 224 - CESTAT CHENNAI - TMI - Wrong availment of modvat credit - capital goods - violation of Rule 57Q and 57(T) of CER - Held that:- appellants duly intimated the Department prior to the importation of capital goods, which is mandatory for availing capital goods credit. They have also intimated that the said capital goods were shifted to unit-II which is on record. The allegation made in the adjudication order and in the impugned order that the appellants have not received the capit .....

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there is no record on availing credit either by unit I or unit II.

Appellants have reversed the entire credit availed by while shifting on 30.08.99 to their unit-II, which is clearly reflected in the invoice dated 31.08.99 and the appellants have paid the duty by reversal of RG23 (c) part2 006 on 31.08.99. It is further supported by RT12 returns filed for the month of August'99 wherein both availment of debit of RG23 (c) part 2 has been reflected in the returns. Rule 57Q (8) clearly s .....

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pellants own units. - appellants followed the procedure correctly in conformity with Rule 57Q, 57(T) and 57(S) and rightly availed and reversed the same at the time of removal of capital goods to their unit-II. Accordingly, the impugned order disallowing credit availed against the first appellant and imposition of equivalent penalty is set aside. - Decision in the case of Pooja Forge Ltd (2006 (1) TMI 290 - CESTAT, NEW DELHI) followed - Decided in favour of assessee. - E/MISC/42207-42208/2013 & .....

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use title from UMS Radio Factory Limited to UMS Technologies Limited is allowed. Miscellaneous applications are disposed of. After dispensing miscellaneous applications the appeals are taken up for disposal. 2. Both the appeals are arising out of a common order in appeal and common adjudication order. The brief facts of the case are that the appellants are registered with the Central Excise for manufacture of electronic items such as antenna, booster, stabilizer etc. They have two units ie., uni .....

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ctively. Subsequently, unit-II returned these five machines to unit-I in July'99 and August'99 and unit-I took credit amounting to ₹ 29,34,781/- on the CVD paid. These machines were once again shifted to unit-II after reversal of the entire credit. The department issued show cause notice dated 2.9.2004 demanding irregular availment of credit and also proposal for penalty under 123Q and 209A. 3. The adjudicating authority in his order dated 29.12.2004 disallowed the credit and also .....

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ation of the machines till the last transfer to unit-II. He submits that both the unit-I & II are located on the same road. They duly intimated the importation of capital goods to the jurisdictional Asst. Commissioner, Central Excise under Rule 57(T) (1), it was duly acknowledge by the department. He submits that even though they have shifted the said capital goods to unit-II, the unit-I not availed any modvat credit. Only in July,99 when they received the capital goods from unit-II, they av .....

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t-II belongs to the appellant's company and they have not violated any law. He submits that Rule 57(Q)(8) of CER provides for removal of capital goods from the factory either for home consumption or for export on payment of appropriate duty before installation of the capital goods and they have removed the capital goods prior to the installation and reversal of the credit. There was no dispute on unit-II availing the said capital goods credit. Imposition of penalty on unit-II is not sustaina .....

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t only on paper. Therefore, he pleaded that the impugned order to be upheld. 7. I have carefully considered both the submissions and the records. The short issue to be decided in this case is wrong availment of modvat credit availed by the first appellant on capital goods received and not used by them and subsequently reversed when cleared to second appellant and whether they violated Rule 57Q and 57(T) of CER. There is no dispute on the fact that both unit-I and unit-II of the appellants having .....

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ed that the said capital goods were shifted to unit-II which is on record. The allegation made in the adjudication order and in the impugned order that the appellants have not received the capital goods is not well founded with any supported evidence. There is no verification report either from the Range Superintendent or from the division authorities concerned after the receipt of the first intimation in 1997 & 1999. Without any investigation and proof of evidence contrary to the intimation .....

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d the declaration under Rule 57S(2) on 30.8.99, and intimated to the jurisdictional Asst. Commissioner, which was duly acknowledged by the Asst. Commissioner. I find that the Deputy Commissioner of Central Excise vide letter 7.9.99 intimated the appellant unit-I acknowledging intimation and directed the Range officer, Coimbatore to verify the correctness of the duty payment under the above mentioned Rule and report this office immediately. There is no dispute on the fact that the appellants have .....

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