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Commissioner of Central Excise Kolhapur Versus Sweet Industries

2016 (4) TMI 101 - CESTAT MUMBAI

Denial of cenvat credit - inputs and capital goods sent to job-worker for further processing and the inputs sent directly to job-workers for further processing - Held that:- As regards inputs and capital goods sent to job-worker and not received within 180 days, find that the learned counsel was correct in bringing to notice that the appellant had prepared challans for movement of inputs, partially processing inputs and capital goods as provided under Rule 4(5)(a) of the Cenvat Credit Rules. The .....

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al goods were received back within 180 days from the clearance to the job-worker. Provisions of Rule 4(5)(a) of Cenvat Credit Rules are fully satisfied and the impugned order to that extent is correct.

As regards the inputs sent directly to job-worker for manufacture of final products, on a careful reading of the proviso to the said Rule 4(5)(a)(1) it contemplates that the appellant has to evidence that the inputs delivered directly to the job-worker are received back from the job-wor .....

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it has to be held that the said cenvat credit availed on such inputs delivered directly is incorrect and needs to be demanded from the respondent. Allow the appeal of the Revenue on this issue by upholding the order-in-original and confirming the demand of ₹ 5,20,872/- + education cess of ₹ 1,400/- along with interest. Penalty imposed on the respondent are unwarranted - Appeal No: E/982/2010 - Dated:- 19-11-2015 - SHRI M V RAVINDRAN, MEMBER (JUDICIAL) For the Petitioner : Shri R.K. .....

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dated 31/05/2006 the respondent was directed to show cause as to why cenvat credit be not denied to them on the following grounds: (i) An amount of ₹ 14,88,335/- + education cess of ₹ 29,767/- availed as credit on the inputs which were stored outside the registered factory premises; (ii) Respondent has not received certain inputs/capital goods involving cenvat credit of ₹ 5,20,872/- + education cess of ₹ 1,400/- as the respondent had not received the said capital goods w .....

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g the submissions made, and following the due process of law, dropped the proceedings initiated in respect of demand of ₹ 14,88,355/- and education cess of ₹ 29,767/-; confirmed the demands on the other two issues, and demanded interest and also imposed penalties. Aggrieved by such an order, an appeal was preferred before the first appellate authority. The first appellate authority, after following the due process of law, set aside the impugned order. 4. The learned departmental repr .....

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outputs which were cleared from the job-workers premises. 5. The learned counsel appearing on behalf of the respondent draws attention to the submissions made by them before the lower authorities. It is his submission that the inputs and the capital goods which were sent to job-worker and allegedly not received within 180 days is incorrect and submits photocopies of the various challans for the movement of inputs and capital goods on which the demand has been raised. He would submit that the ma .....

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payment of duty. He submits a statement indicating the delivery challans of the manufacturers and submits that the billing is done to the units in Sangli while consignment was sent to appellants own unit in Himachal Pradesh. It is their submission that there is no dispute as to the facts that the Himachal Pradesh unit has received the inputs and consumed the same. He would rely upon the judgment of the hon ble High Court of Bombay in the case of Commissioner of Central Excise, Nagpur vs. Indora .....

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idered the submissions made at length by both the sides and perused the records. On perusal of the records I find that the issue involved in this case is regarding denial of cenvat credit to the respondent in respect of the inputs and capital goods sent to job-worker for further processing and the inputs sent directly to job-workers for further processing. 7. As regards inputs and capital goods sent to job-worker and not received within 180 days, I find that the learned counsel was correct in br .....

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take cognizance of the said documents. In my considered view, Tribunal being the last fact finding authority, after considering the documents which are produced before me, I hold that they indicate that the inputs and capital goods were received back within 180 days from the clearance to the job-worker. On this point, I find, the provisions of Rule 4(5)(a) of Cenvat Credit Rules are fully satisfied and the impugned order to that extent is correct. 8. As regards the inputs sent directly to job-w .....

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