TMI Blog2016 (12) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... tement particularly since the law is quite unambiguous and when they were reversing the credit of special additional duty for the removal to other customers. The entire situation also needs to be seen in the context that the appellants are registered with the department for a long time and are well aware of the laws and procedures. Very clearly, there is an element of suppression and intention to evade duty. Revenue neutrality - Held that: - if the situation was revenue neutral, as argued by appellants, there was no need to even to reverse the input credit of basic excise duty - the plea of revenue neutrality in the instant case is not acceptable. The order passed by Commissioner (Appeals) is legal and proper and does not call for an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit of 4% Additional Duty of Customs in respect of the said Inputs. It was observed that the assessee had also cleared their inputs namely Nickel Metal as such to their Customers on payment/reversal of amount equal to the Cenvat credit availed by them including the 4% Additional duty of Customs. 3. In his statement dated 26.05.2009, Sh. Hitesh Vadalia, Managing Director of M/s Monarch Catalyst Pvt. Ltd. stated that he was aware of the fact that certain inputs were cleared as such without payment of 4% Additional duty of Customs from their unit No. I situated at A-94 F-1/2, Phase-I, MIDC, Dombivli (E) to unit No. II situated at D-26, MIDC, Phase-ii, Dombivli (E), since he believed that the said clearances were not sale of goods but t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Chennai) 6. Ld. A.R. invited attention to Rule 3(5) of Cenvat Credit Rules and stated that the Rule was very clear and there was no ambiguity. The word used in the Rule is removed, which mean any kind of removal be it for sale or transfer of goods. He also pointed out that the appellant has reversed the basic duty but did not reverse the special additional duty even though the rule is clear and they had themselves cleared the inputs as such to other customers on payment/reversal of amount equal to the Cenvat Credit availed by them including the 4% additional duty of Customs. This, he claimed, showed that the appellants were well aware of the provisions yet deliberately did not reverse the credit on account of the additional duty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital goods and such removal shall be made under the cover of an invoice referred to in rule 9. It is seen from a plain reading of the above Rule that when the inputs on which Cenvat Credit has been taken are removed as such from the factory the manufacturer is required to pay an amount equal to the credit availed on such inputs. Commissioner (Appeals) has rightly interpreted the rule in Para 8 of his order, which is reproduced below:- 8 From the text of the rule I find that in case of removal of inputs on which Cenvat credit is availed, are removed as such from the factory the word used is removed and thus there is no scope for interpretation here and any removal; be it for sale or for transfer of stock, is covered by this rule. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neutrality, I find that the entire scheme of the cenvat is based on such cenvat chain by which debit by one unit is available to the other unit as credit for its payment. If, revenue neutrality is applied to all the cases, except for consumers/retail goods at no stage of successive transactions, Central Excise Duty would accrue. Hence the revenue neutralizing effect cannot be justified in these circumstances. Further, by not reversing the cenvat credit and retaining the same without the goods to which it relates to, is contradictory to the cenvat scheme, where the duty paid on the goods used in or in relation to manufacture of the finished goods is available as credit to the manufacturer. Further that the clearance were to sister unit, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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