TMI Blog2019 (1) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... rocedural inadequacies will not be enough to deny the availment of credit by assessee in respect of various equipments etc. imported by their head office and distributed to the former by way of M.R.Os. The ratio laid down in Cosmos Casting India Ltd. [2011 (2) TMI 511 - CESTAT, NEW DELHI] will apply on all fours in favour of the appellant, where it was held that When there is no dispute about the realisation of the demand by the exchequer, the technicalities shall not be a bar to deny credit to the assessee. Appeal dismissed - decided against Revenue. - Appeal No.ST/588/2011 - FINAL ORDER No. 40022/2019 - Dated:- 8-1-2019 - Shri Madhu Mohan Damodhar, Member (Technical) And Shri P. Dinesha, Member (Judicial) Shri B. Balamuruga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at respondent is not eligible to avail cenvat credit of capital goods as it is violative of provisions under Rule 2 (m) read with Rules 7, 9 of Cenvat Credit Rules, 2004. Accordingly, a show cause notice dt. 30.09.2008 was issued to the assessee inter alia, proposing recovery of cenvat credit of R.20,62,285- relating to credit availed on equipments with interest and Cenvat credit amount of ₹ 3,46,237/- being Special Additional Duty of Customs (SAD) with interest and ₹ 6,84,484/- on the box rentals realized by them during September 2003 to January 2008 with interest, as also imposition of penalties under various provisions of law. In adjudication, the adjudicating authority vide an order dt. 24.12.2009 confirmed the demand of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocedural grounds. Reliance in this regard is placed in the case of Cosmos Casting India Ltd. v. CCE, Raipur, 2011 (23) STR 144 (Tri. Del) and Commissioner of Central Excise, Chennai v. MRF Limited, 2009 (244) E.L.T. 601 (Tri.-Chennai) ii) Alternatively, the Respondent could have availed the credit following other procedures, such as availing the credit based on the Bill of Entry (in the name of the Head Office in Mumbai) as clarified in CBEC Circular No.179/13/96-CX dated 29.02.1996. iii) The Material Receipt Order based on which credit was availed by the Respondent contained all the particulars as in a Bill of Entry. This was already submitted by the Respondent in their reply to the Show Cause Notice, as recorded in para no.10 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by an ISD. The dispute in the appeal centers around the question as to whether the credit availed by Hathway in respect of the various equipments and materials imported by our head office and distributed to Hathway Chennai, as an input service distributor on the basis of MRO s is in accordance with law. It is also alleged that the MRO under which the head and equipments imported by the head office are distributed, inter alia, to the assessee does not fit into any of the documents prescribed in Rule 9 of the Cenvat Credit Rules, 2004. The assessee has conceded that the appropriate procedure would have been to register the head office as an imported dealer under Central Excise and passed on the CVD to various branches along with transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffice at Mumbai. Ostensibly, only for enabling the related accounting matters to be handled by the head office, the impugned equipment have been imported by the said head office only. There would have been no cause for complaint, if the assessee had themselves imported the said equipment and taken credit of the quantum of CVD suffered on such imports. There is also no allegation by the department that the goods though despatched to the assessee under cover of MROs have not suffered CVD thereon at the time of their import. 5.3 Viewed in this light, we are of the considered opinion that the distribution of capital goods credit by the head office prior to introduction of Rule7(a) of the CCR 2004, or, for that matter, the transfer of credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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