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M/s Triveni Glass Ltd. Versus Commissioner of Central Excise, Allahabad

2016 (10) TMI 68 - CESTAT ALLAHABAD

Modvat credit - capital goods being used for manufacture of float glass which is not commencing production - capital goods were received into factory and central excise duty was paid on them - capital goods were utilized for the manufacture of final products - C.B.E.C. Circular No. 277/111/96-CX dated 02-12-1996 categorically specified that the restriction in said Rule 57Q was introduced only from 01-01-1996 that the credit is admissible only after installation/utilization of capital goods and i .....

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the said circular is squarely applicable in the present case. We therefore set aside both the impugned Orders-in-Original and impugned Order-in-Appeal. - Decided in favour of appellant - Appeal Nos. E/2345/2007 & 2360/2007 –EX [DB] - Final Order No. 70763-70764/2016 - Dated:- 29-8-2016 - Mr. Anil Choudhary, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical) Shri B.L. Narasimhan,(Adv) & Shri Atul Gupta, for the Appellant Shri Rajeev Ranjan, Joint Commissioner,(AR), for the Depar .....

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e of float glass falling under same Chapter heading No. 70.02 within the same factory. From May, 1995 onward they took Modvat Credit of duty paid on the capital goods received in their factory for installation of manufacture of float glass under Rule 57Q of Central Excise Rules, 1944. It appeared to Revenue that the capital goods were received in the factory for manufacture of float glass but the manufacture of float glass had not yet started. Therefore, till the manufacture of float glass does .....

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be denied. The subsequent Show Cause Notice dated 22-12-1995 had a proposal to demand of duty of ₹ 1,76,10,163/- which was paid by utilizing alleged ineligible credit. Further, credit of ₹ 98,08,679/- was proposed to be denied on the ground that name of the consignee showed the address of office. On 18-03-1997 a corrigendum was issued to the Show Cause Notice dated 28-11-1995 proposing to deny credit on the refractory material. The Show Cause Notice dated 22-12-1995 was adjudicated t .....

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he Circular No. 277/111/1996 dated 02-12-1996 issued by C.B.E.C. if he is competent. The matter remanded was adjudicated through Order-in-Original No. 74-DEM/2006 dated 07-12-2006 by Original Authority. Through the said order the proposal to deny credit on the ground that the invoices showed address of head office was dropped. Further, the proposal to deny part of the credit on the ground that certain goods were not part of machinery was also dropped. Further, credit on capital goods of ₹ .....

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ital goods was confirmed and it was held that the said capital goods being used for manufacture of float glass which is not commencing production the credit was disallowed and held to be recoverable under Rule 57U of Central Excise Rules, 1944. A penalty of ₹ 50,00,000/- was imposed both the Orders-in-Original dated 07-12-2006 & 03-04-2007 were challenged before Commissioner (Appeals). The ld. Commissioner (Appeals) through his impugned Order-in-Appeal dated 24-05-2007, upheld both the .....

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tilized for the manufacture of final products, (d) The C.B.E.C. Circular No. 277/111/96-CX dated 02-12-1996 categorically specified that the restriction in said Rule 57Q was introduced only from 01-01-1996 that the credit is admissible only after installation/utilization of capital goods and in respect of factories in existence such credit is admissible immediately after the receipt of the goods and in view of such clarification the Modvat credit availed by them was admissible to them. 4. Heard .....

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