TMI Blog2018 (2) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... or in the books of accounts of the receiver. In the present case there is no dispute that the appellant received the duty paid packing materials under the cover of Central Excise Invoice issued by their Sister Unit - It has been mentioned that when inputs or capital goods on which Cenvat Credit has been taken, are removed as such from the factory, the manufacturer of the final products shall pay an amount equal to the credit availed in respect of such inputs and such removal shall be made under the cover of Invoice issued under Rule 9 of the Rules. As such it is a case of Inter Unit transaction of the input materials. In such situation, the Cenvat Credit cannot be denied for non-observance of procedural condition of technical nature. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty under Section 11AC of the Central Excise Act, 1944. He dropped the demand of ₹ 18,43,319/-. On appeal, the Commissioner (Appeals) upheld the adjudication order. 2. Hence the present appeals before the Tribunal. 3. The ld.Consultant appearing on behalf of the appellants, submits that the Aurangabad Unit had received the packing materials in their factory and availing credit. Thereafter, they have sent part of the packing materials to their unit at Manikchak Unit and Sultanganj Unit. He further submits that there is no dispute in the present case about the duty paid nature of the packaging materials and there is no dispute that their Aurangabad Unit had received the packaging materials to their factory. It is also not in dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. 8. The Learned Counsel for the appellants contended that the Aurangabad Unit of the appellant company made centralized purchase of the inputs and distributed the same to its different Units. In the present case, the distribution of the credit in respect of packing materials to Manikchak Unit and Sultanganj Unit was denied. 9. I find that Rule 9(1) of the Cenvat Credit Rules provides that the Cenvat Credit shall be taken by the Manufacturer on the basis of the documents as prescribed therein. Sub Rule (2) of Rule 9 of Rules, 2004 provides that no Cenvat Credit under Sub Rule (1) shall be taken unless all the particulars as prescribed under the Central Excise Rules, 2002 are contained in the said documents. Proviso to Sub Rule (2) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eproduced below : 13. Modvat credit was denied to the assessee by the Joint Commissioner and confirmed by the Commissioner (Appeals) only on the basis of information furnished by the Superintendent, Central Office, Vishakhapatnam, on 9-8-1999 to the effect that the supplier did not submit the subject invoices along with their monthly return and details of the goods received and sold were not entered in RG 23D Register. The above procedural lapse, if any, is attributable to the supplier. The ratio of law laid down by the Hon ble Supreme Court in Mangalore Chemicals Fertilizers Ltd. (supra) is not applicable to the facts of the present case as in the cited judgment, while considering the entitlement for exemption and refund, it was hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s April, 2000 to March, 2002 raising aforesaid demand on the allegation that input received by one unit from its sister unit were not entitled to CENVAT credit. There is nothing on record to state whether inputs so received were not used in manufacture. Also record does not demonstrate that input had not undergone suffering appropriate duty before procurement. The order of adjudication also fails to exhibit that purchase is an essentiality to claim CENVAT credit under law even if the term procurement being substituted in Rule 7(4) of CENVAT Credit Rules, 2002. There is no doubt that Notification No. 13/03, dated 1-3-2003 has substituted the word procured for the word purchase in sub-rule (4) of Rule 7 of CENVAT Credit Rules, 2002 w.e.f. 1-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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