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2016 (11) TMI 507 - CESTAT KOLKATA

2016 (11) TMI 507 - CESTAT KOLKATA - TMI - Cenvat Credit - Receipt of inputs which was not amounting to Manufacture - cutting/slitting of H.R./C.R. coils/sheets into C.R. sheets of required sizes - C.B.E.C. Circular No.811/8/2005-CX dated 02.03.2005 - whether Respondent is eligible to take CENVAT Credit on the impugned goods? - Held that: - reliance placed on the decision of the case Commissioner of Central Excise & Customs vs. MDS Switchgear Ltd. [2008 (8) TMI 37 - SUPREME COURT] where it was h .....

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rejected - decided against appellant. - Appeal No. E/53/08, Cross Objection No.CO-68/08 - Order No. FO/A/76153/2016 - Dated:- 24-10-2016 - Hon ble Shri P. K. Choudhary, Member(Judicial) Shri S.S.Chattopadhyay, Supdt.(AR) for the Revenue Shri Rajeev Agarwal, C.A. for the Respondent ORDER Per Shri P. K. Choudhary This is an Appeal filed by the department against Order-in-Original No.53/Commissioner/CE/Kol-IV/2007 dated 12.10.2007 in the case of M/s. Hindustan Motors Ltd. (hereinafter referred to .....

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ing. They availed CENVAT Credit on H.R./C.R. coils/sheets and paid duty on the resultant sheets in required sizes. 1.1 The Revenue alleged that on verification of the records maintained by the Respondent, it was noticed that cutting/slitting of H.R./C.R. coils/sheets into C.R. sheets of required sizes does not amount to manufacture in view of the C.B.E.C. Circular No.811/8/2005-CX dated 02.03.2005, no duty was payable on such C.R. sheets. Since the process does not amount to manufacture, no duty .....

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944 along with interest and why penalty should not be imposed under Rule 15 of CENVAT Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. 1.2 The above show cause notice resulted in the passing of the Order-in-Original and it was held that : I find that the assessee placed indent of C.R. Sheets to M/s.TISCO, Jamshedpur and M/s.TISCO, Jamshedpur, did not sent the C.R. Sheets directly to the assessee. Instead, M/s.TISCO, Jamshedpur, sent HR/CR Coils of iron or non alloy steel on .....

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M/s.TISCO, Jamshedpur. In terms of Boards Circular No.811/8/2005-CX dated 02.03.2005, the Commissioner, Central Excise, Jamshedpur raised a show cause notice vide C.No.V(12)02/CEP/JSR2006/1732 dt.23.2.06 on M/s.Tata Ryerson Ltd., Jamshedpur, to initiate proceedings to disallow Cenvat Credit under the provisions Rule 6(1) of Cenvat Credit Rules, 1944. The Commissioner, Central Excise, Jamshedpur finally decided the case against M/s.Tata Ryerson Ltd., Jamshedpur, as no duty is attracted on final p .....

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appeals by denying them the benefit of Modvat credit on the ground that the activity of decoiling, straightening and cutting of bars and C.R. Coils does not amount to manufacture. Admittedly appellants have paid duty on their final product. The issue stands decided in favour of the appellants by umpteen number of decisions of the tribunal reference in this regard is made to the tribunal decision in the case of J.R.K. Indus. (Pvt.) Ltd. 2006(74)RLT 574 as also tribunal decision in the case of Shr .....

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d demand for wrong availment of credit cannot be upheld. Inasmuch as the issue is covered by the above decision of the Tribunal as also by the Hon ble Supreme Court, we set aside impugned order and allow the appeals with consequential relief to the appellant. The above decision of the Hon ble Central Excise & Service Tax Appellate Tribunal, Kolkata, in the Central Excise Appeal No.218 and 219/2006, filed by M/s.Tata Ryerson Ltd., Jamshedpur, was pronounced whereunder the demand raised under .....

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s into C.R. Sheets of required sizes does not amount to manufacture in terms of CBEC Circular No.811/8/2005-CX dt.02.03.05. Therefore, what was paid by M/s.Tata Ryerson Ltd., Jamshedpur on such C.R. Sheets was not duty, hence credit of that amount should not have been taken by the assessee. (ii) The Order passed by the Hon ble CESTAT vide Order No.A-614-615/Kol/06 dated 10.07.2006, relied on by the Adjudicating Authority, has not attained finality, as an appeal has been filed before the Hon ble .....

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ent by various forums. In the case Commissioner of Central Excise & Customs vs. MDS Switchgear Ltd. [2008 (229) ELT 0485 (SC)], the Hon ble Apex Court in Paras 7, 8 & 9 has held as follows:- 7. The Tribunal has come to the conclusion that in fact there was no loss of revenue. It accepted the appeal by recording the following reasons : Reasons given by the appellants for the alleged inflation of the value of the intermediate goods are logical. What was required of the Commissioner was to .....

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