TMI Blog2018 (8) TMI 1674X X X X Extracts X X X X X X X X Extracts X X X X ..... entity or not and whether they have a common PAN or not even whether the two units share a common area. What is relevant is whether they are separate registrants under the Central Excise. In the present case, an appellant is procuring bottlers from their sister units on excise invoices issued in their name along with the stock transfer challans. Thereafter, the assessee is selling the goods to their customer - no element of trading is missing when the appellant procures bottlers from their sister units and sells them. It is at par with the procurement of bottles from bottlers and selling except from the fact that they are not directly paying their suppliers for the bottles supplied - the appellant is required to reverse the CENVAT cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2018 - Final Order No. A/31042/2018 - Dated:- 28-8-2018 - Hon ble Mr. P. Venkata Subba Rao, Member ( Technical ) Shri G. Prahlad, Advocate for the Appellant Shri Arun Kumar, Deputy Commissioner ( AR ) for the Respondent ORDER [ Order Per : P. Venkata Subba Rao ] The appeal is directed against Order-in-Appeal No. VIZEXCUS- 001-APP-141-17-18 dated 09.11.2017. 2. The appellant herein is manufacturer of aerated water under the brand names of Coca-Cola, Fanta, Limca, Thums up, Sprite and are paying Central Excise duty. In addition, the appellant also sources these products from their sister unit and also other franchisee bottlers to cover to the market demands. Therefore the appellant is a) manufacturing these produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the demand and imposed penalties and interest has proposed. Aggrieved, the assessee appealed to Learned Commissioner (Appeals) should vide the impugned Order-in-Appeal rejected. 4. The Learned Counsel for the appellant submits that the entire dispute is on a simple point. It is his contention that the trading activity which they had undertaken is an exempted service while, the goods which are manufactured are dutiable goods. When they purchase bottles from other bottlers and sell them it amounts to trading and the value of said activity has been reckoned for calculating the amount of CENVAT credit to be reversed. It is the Department s contention that the value of the goods which they received from the sister plant and sold in the marke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod can be invoked in their case. 5. The Learned Departmental Representative opposed the appeal. It is his contention as held by the Hon ble High Court of Gujarat in the case of Sintex Industries Ltd., [2013 (287) ELT 261] even two units which are a single legal entity with the common boundary wall should be treated as to separate Central Excise registrants and the assessee is entitled to credit on eligible inputs utilized in generation of electricity to the extent to which it was used produce electricity within its factory registered for the purpose but not to the extent it was supplied to a factory registered as a different unit even though both are parts of the same legal entity and have the same PAN. 6. I have considered the argu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise. The case of Rushil Decor Limited (supra) relied upon by the Learned Counsel is different inasmuch as they were not selling any goods in that case but only importing and transferring the goods. Hence, there was no trade. In the present case, an appellant is procuring bottlers from their sister units on excise invoices issued in their name along with the stock transfer challans. Thereafter, the assessee is selling the goods to their customers. When specifically asked by the Bench, the Learned Counsel said that he is not sure how the money got transferred to the sister units and said that it will probably be through account adjustment by their head office; otherwise the sister units will keep spending money to produce bottles and the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned Counsel argues that they will be put to disadvantage as a result. However, equity has no place in fiscal statutes and they should be read as they are written without any indentment. Further, Rule 6 of CENVAT Credit Rules, 2004 itself gives several options for the assessee to choose from and they chose this option. If this did not suit them, they could have taken another option. As far as the extended period of recovery under Section 11A(4) is concerned, it is mentioned in para 11 of the show cause notice that the assessee were requested vide letter dated 14.08.2012, 04.09.2012, 08.10.2012, 18.10.2012 and 05.11.2012 to submit details of trading goods using common input services. But, the assessee had submitted only partial details i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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