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TMI Blog2016 (12) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... in September' 2010. The finished goods and the cenvat credit available therein were transferred to its Dharuhara Unit. As a result of closure of factory, the Department initiated proceedings against the appellant and confirmed the cenvat demand along with interest. Penalty was also imposed on the appellant. The reasons assigned for confirmation of demand are as under:- (i) Non-reversal Cenvat credit on cylinder valves (Rs.1,37,378/-) (ii) Non-reversal of cenvat credit on scrap and discarded capital goods at the time of closure of the factory (Rs.4,25,704/-) (iii) Delayed reversal of cenvat credit (Rs.2,20,704/-) (iv) Cenvat credit passed on to the customers under invoices issued in the capacity of the first stage dealer (Rs.50,207/-) 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e period 2007-2008 on which cenvat credit has not been taken, is not appreciated at this juncture for the reason that no documents were produced to show that the valves cleared during the disputed period were procured prior to 2007-2008 and no Modvat/ Cenvat credit has been taken by the appellant. Therefore, I do not find any merits in the appeal and upheld the cenvat demand of Rs. 1,37,378/- confirmed against the appellant along with applicable rate of interest and the penalty confirmed in the adjudication order. 7. With regard to clearance of scrap and discarded capital goods, the submission of the Ld. Consultant is that the original capital goods were procured during the period 1993/1994 on which no Modvat/ cenvat credit had been availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvoices were issued by the first stage dealer to the buyesr of the goods, and the said goods are not co-relatable with the goods manufactured by the appellant as a manufacturer, in my opinion, credit cannot be disallowed on the cenvatable invoices issued under the dealer registration certification. Thus, cenvat demand of Rs. 50,207/- and the imposition of penalty of equal amount is not sustainable. 10. In view of the foregoing, the appeals are disposed of in following terms: (a) Cenvat demand of Rs. 1,37,378/- is upheld along with interest and penalty confirmed in the impugned order. (b) Matter is remanded to the original authority for verification of the duty paid documents for ascertainment of facts regarding availment of Modvat/Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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