9911796707
TMI Blog2018 (10) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sets and Cranes etc. It is alleged in the show cause notice that the appellant have received four number of D.G. Sets from their sister concern at Bangalore during the period April 2009, January 2009 and January 2010 on stock transfer basis and availed the Cenvat credit of the duty paid inputs. It is alleged in the show cause notice that, the credit availed is inadmissible, in as much as the inputs were not used in further manufacturing and as such the availment of credit was not proper. The description in the transfer invoice/ challan is - KVA Rad cooled CAT packaged, D.G. Set with Acoustic Enclosure along with standard accessories. A total credit of Rs. 17,60,378/- was taken on the 4 D.G. Sets, as alleged in SCN dated 03/11/2011 relatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- was confirmed along with equal amount of penalty under Rule 15 of Cenvat Credit Rules, 2004 along with interest. Aggrieved by the said order, appellant preferred appeal before the learned Commissioner (Appeals) who Vide Impugned order was pleased to reject the appeal by upholding the Order-in-Original. Aggrieved by the said impugned order, the appellant is before this Tribunal. 4. The learned counsel for the appellant contends that, at the very outset, when the credit was objected by the Revenue pursuant to audit, it was the stand of the appellant that the D.G. Sets were received incomplete or in non-operational condition and subjected to further process for completion with addition of Control Panel and other processes, they became func ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s requirement. On completion of the said process, when the customer is satisfied, an entry is made in the RG-1 register declaring the machine as manufactured and ready for clearance. It is also observed that manufacture takes place when raw materials undergo a series of changes and transformation that result in the formation of a commercially distinct commodity having a different name, character and use. If a product is not saleable, it would not be marketable and consequently process of manufacture is incomplete and excise duty would not be leviable thereon. It was also held that, the burden of proof of manufacture is on the Revenue. It was also held that physical presence of input in final products is not a prerequisite to claim credit. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctional or are complete as claimed by the appellant." Further, reference was made through the definition of Diesel Generator/D.G. Set available in Wikipedia - "a diesel generator is the combination of a diesel engine with an electrical generator (often an alternator) to generate electrical energy". It was further observed that, M/s TIL, Bangalore, from where the D.G. Sets have been received by the appellant, is a dealer and possessed a Central Excise registration meant for trading purpose of the goods. This fact also fortified the allegation of Revenue that D.G. Sets received by the appellant for trading purpose only. Further, it was observed that the process of addition of Control Panel to these D.G. Sets to manufacture was disagreed as it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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