TMI Blog2018 (1) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... er ( Technical ) Shri.N.N. Prabhudesai, Supdt. ( AR ) for appellant Shri Stebin Mathew for respondent ORDER Per : Raju 1. This appeal has been filed by the Revenue against order of the Commissioner (Appeals) dropping demand of reversal of credit against M/s.Deluxe Recycling (India) Pvt. Ltd. 2. Ld. AR pointed out that the respondent had transferred their capital goods under Rule 4 (5) (a) to their sister unit in the year 2009. The goods were not received back by the respondents till 21/03/2014 and a demand show-cause notice was issued to the respondent asking them to reverse the credit taken on the said capital goods. Under the Rules, the goods cleared under Rule 4 (5) (a) have to return back to the supplier within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding the destruction of machine within a reasonable period and therefore, there was a clear intention to evade payment of duty. 3. Ld. Counsel for the respondent argued that they had sent intimation of destruction of inputs but not of destruction of the capital goods. They have also reversed the Cenvat credit in respect of inputs. He argued that in view of the decision of the Tribunal in the case of Zenith Machine Tools Pvt. Ltd. 2010 (255) ELT 83 (Tri-Bang) which held that reversal of credit cannot be demanded in these circumstances. 4. I have gone through the rival submissions. The respondents have sought to rely on the decision in the case of Zenith Machine Tools (supra), where the machine was transferred to sister unit but w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t again when the inputs or capital goods are received back in his factory or in the premises of the provider of output service (b) The CENVAT credit shall also be allowed in respect of jigs, fixtures, moulds and dies sent by a manufacturer of final products to a job worker for the production of goods on his behalf and according to his specifications. 5. A simple reading of the said Rule shows that the respondents were required to return the said machines within 180 days of the clearance of the same to the sister unit under the said Rule. The respondent had purchased the machine in 2009 and immediately receipt of the same had taken credit and cleared the same under Rule 4 (5) (a) to the sister unit. The machine since 2009 was lying ..... X X X X Extracts X X X X X X X X Extracts X X X X
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