TMI Blog2017 (3) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... done so. Therefore, the transfer from appellant unit to their sister-undertaking has been of duty-paid goods and is a transaction that is clearly outside the purview of Central Excise Act, 1944 - appeal allowed - decided in favor of appellant. - E/2406/2006 - A/86105/17/EB - Dated:- 28-2-2017 - Shri Ramesh Nair, Member (Judicial) Shri C J Mathew, Member (Technical) Appearance: Shri Prakash Shah, Advocate for the appellant Shri Ajay Kumar, Jt. Commissioner (AR) for the respondent Per: C J Mathew: Appeal of M/s Philips Electronics India Ltd is in challenge to the demand for ₹ 14, 81,940 under section 11A of Central Excise along with interest thereon and the imposition of penalty of ₹ 14,81,940 und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in dispute that appellant-unit took recourse to rule 3(4) of CENVAT Credit Rules, 2002 between July 2002 and 9th September 2004 and rule 3(5) of CENVAT Credit Rules, 2004 between 9th September 2004 and March 2005 to clear these inputs. The said rules mandate that an amount equal to the credit availed be paid upon clearance of inputs, or capital goods, as such. 6. The proceedings against the appellant-unit hinges on the condition of duty-free procurement in notification no 22/2003-CE dated 31st March 2003 which exempts duties of excise payable on manufactured goods and it was contended that the appellant had, by supplying procured inputs, as such, failed to conform to the condition that user industry brings the excisable goods directly f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or more conditions appended to the privilege of exemption cannot be visited upon appellant. 9. We also note that there is no bar on a manufacturing facility removing inputs as such for any reason that may have motivated such removal. CENVAT Credit Rules, 2004 require that, if CENVAT credit has been availed on such inputs on procurement, duty to that extent must be made good. Admittedly, appellant has done so. Therefore, the transfer from appellant unit to their sister-undertaking has been of duty-paid goods and is a transaction that is clearly outside the purview of Central Excise Act, 1944. 10. The demand confirmed in impugned order lacks authority of law and is set aside. 11. Appeal is allowed. (Pronounced in Court on 28/02/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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