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Dhampur Sugar Mills Ltd. Versus Commissioner of Central Excise, Meerut-II

2015 (12) TMI 1393 - CESTAT NEW DELHI

Denial of MODVAT Credit - appellant had removed molasses from the sugar factory to the Kachcha pit situated outside the factory premises - Held that:- Receipt of the disputed input i.e. molasses in the chemical unit of the appellant and their use within the factory for the intended purpose have not been disputed either in the adjudication order or in the impugned order. However, the modvat credit has been denied on the sole ground that the bill issued from the kachcha pit to the chemical unit is .....

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r the intended purpose is not in dispute. In the circumstance of the present case, since the original authority has not carried out proper exercise, I am of the view that the matter should be remanded back to the jurisdictional Assistant/Dy. Commissioner of Central Excise, who shall verify the documents as provided under the said Notification and if maintenance of such documents are in conformity with the requirement of the said Notification, the Modvat benefit should be allowed to the appellant .....

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t is engaged in manufacture of sugar and chemicals. During the course of manufacture of sugar, the by-product namely, molasses emerges, which is used captively for manufacture of the chemical goods. The sugar and chemical units of the appellant are separately registered with the Central Excise Department. During the disputed period, the appellant had removed molasses from the sugar factory to the Kachcha pit situated outside the factory premises. The said removal had been effected through invoic .....

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102.90 quintals of molasses, modvat credit has been denied to the appellant. In appeal against the adjudication order, the Commissioner (Appeals) has upheld denial of Modvat credit. Hence, the present appeal before this Tribunal. 2. Ld. Advocate Shri Alok Arora appearing for the appellant submits that both the sugar and the chemical units are belonging to the appellant's company and the Central Excise duty paid on molasses at the sugar unit was taken as modvat credit in the chemical unit. H .....

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nit owned by the appellant and that the receipt and utilization of the said molasses have been duly accounted for in the books of accounts, the appellant is entitled for the benefits of Notification No.7/99-CE (N.T.) dated 09.02.1999 issued by the Central Government. To substantiate his above stand, the ld. Advocate relies on the judgment of Hon'ble Allahabad High Court delivered in the case of Commissioner of Central Excise, Allahabad vs. Hindalco Industries Ltd., reported in 2013 (293) ELT .....

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credit should be taken based on the invoice issued by the manufacturer. According to him, since the credit has been taken on the strength of the bill, which is not prescribed as valid document under Rule 52A of the rules, the appellant is not entitled for the credit. 4. I have heard the ld. Counsels for both the sides and perused the records. 5. Receipt of the disputed input i.e. molasses in the chemical unit of the appellant and their use within the factory for the intended purpose have not bee .....

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