TMI Blog2017 (12) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... chining Division - Held that: - Cenvat credit was taken wrongly by the Foundry Division since such duty was paid using the cenvat credit account by the machining division and cannot be considered to be payment of duty. The cenvat credit also has been taken on the basis of non prescribed duty paying documents - reversal of such cenvat credit taken alongwith interest and levy of penalties upheld. Appeal dismissed - decided against appellant. - Excise Appeal Nos.50322 and 50312 of 2017 - A/58556–58557/2017-EX[DB] - Dated:- 22-12-2017 - Mr. (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) Sh. B. L. Yadav, Authorised Rep. of the appellant Sh. K. Poddar, AR for the respondent ORDER Per: V. Pad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Foundry division was held to have wrongly taken and utilised the cenvat credit of duty paid by the machining division. Such cenvat credit was ordered to be reversed and penalty was also imposed on the foundry division as well as on Sh. I. S. Desai, Deputy Manager. Aggrieved by the impugned order, appeals have been filed by both the machining division as well as Foundry division of M/s Continental Engines Limited. 4. With the above background, we heard Sh. B. L. Yadav, ld. Auth. Rep. for the appellant as well as Sh. K. Poddar, ld. AR for the Revenue. Written submissions submitted by both the sides were also taken on record. 5. We heard both sides and perused appeal record. 6. The main submission on behalf of the appellant is summa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported without payment of customs duty. At the time of such clearance to DTA unit, the Machining Unit is required to pay the custom duty which was payable at the time of import. Such clearances cannot be considered as that of goods manufactured by the Machining Unit and hence payment of duty for such clearances out of cenvat credit is not sanctioned by the Cenvat Credit Rules. 8. Ld. AR further submitted that the Foundry Division was not entitled to take such cenvat credit and as such since the same was paid back after utilisation, interest was rightly levied in the impugned order. 9. We heard both sides and perused appeal record. The Machining Division (100% EOU) had imported raw materials i.e. aluminium ingots without payment of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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