TMI Blog2017 (11) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... ctory premises even after lapse of 180 days from the initial date of removal. In these circumstances, the appellant is required to reverse the credit on the said capital goods. The Appellant had immediately after installing the capital goods, removed the same year under Chits and without following any procedure, whereas for clearance of inputs for job-work they prepared annexure-II challans and followed the laid down procedure. Therefore, imposition of penalty is justified. Considering the facts and circumstances, I do not find any reason to impose penalty on Shri Manoj Joshi under Rule 15 of the CCR. Accordingly, the appeal filed by the Sh. Manoj Joshi is allowed. Appeal allowed in part. - E/12053-12054/2014-SM - A/13311-13312/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e GSDC, Vapi, but later removed the said capital goods and installed the same at their another unit at plot no. 60, for carrying out job work exclusively of their products. It is his contention that while removing the capital goods they have not followed any of the Central Excise Procedures. But, in any case, since the capital goods have been installed in their another unit, which is though not registered, but exclusively engaged in carrying out job work for their main unit, therefore, recovery of cenvat credit availed at the first unit is incorrect in view of the judgment of the Tribunal in the case of Pooja Forge ltd. Vs CCE Faridabad, 2006 (196) ELT 18 (Tri. Del) later upheld by the Hon ble Punjab Haryana High Court reported as C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital goods had been removed to their, another premises which was engaged in exclusive job work of their product, in my opinion, is without any sound legal basis. 6. The CENVAT Credit Rules, 2004 specifically provides for such eventualities/situation whereunder inputs/ capital goods can be removed from the factory for job work and in the event, the inputs/capital goods are not returned within the period of 180 days, the assessee is required to reverse the cenvat credit. The relevant Rule 4(5)(a) of the CENVAT Credit Rules, 2004 reads as follows: (5) (a) The CENVAT credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces laid down under the present CENVAT Credit Rules namely rule 3(4) and 4(5)(a), whereunder the procedure for removal of the goods to job worker is prescribed and in the event the input/ capital goods are not returned within 180 days, reversal of credit and thereafter on its return re-credit of the same have been stipulated. I find that the Appellant had immediately after installing the capital goods, removed the same year under Chits and without following any procedure, whereas for clearance of inputs for job-work they prepared annexure-II challans and followed the laid down procedure. Therefore, imposition of penalty is justified. In the result the Appeal filed by M/s Klipco is rejected. However, considering the facts and circumstances, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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