TMI Blog2022 (8) TMI 1253X X X X Extracts X X X X X X X X Extracts X X X X ..... HELD THAT:- The tribunal has pointed out that the department has not objected to the inter unit transfer of input which was the consistent case of the assessee. The tribunal also examined the sample stock account for pre-form submitted by the assessee and, in fact, a screen shot of the said stock account has been incorporated in the order passed by the tribunal. After examining the facts and figures in the said stock account, the tribunal pointed out that there is inter unit transfer from unit-3 to unit-1 which is included in the total issued quantity of unit-3; whereas the same is shown as inter unit receipt from unit-3 in unit-1 stock account and is also apart of total receipt of unit-1 and thereby the same will also be part of consum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t conducting any investigation and enquiry. The revenue has not made out any ground to interfere with the order passed by the tribunal - Appeal dismissed. - CEXA/12/2022 IA No.GA/2/2022 - - - Dated:- 25-8-2022 - HON BLE JUSTICE T.S. SIVAGNANAM AND THE HON BLE JUSTICE HIRANMAY BHATTACHARYYA Appearance: Mr. Uday Sankar Bhattacharyya, Adv. Ms. Aishwarya Rajshree, Adv. ...for the appellant. Mr. Ankit Kanodia, Adv. Ms. Megha Agarwal, Adv....for the respondent. The Court : This appeal filed by the revenue under Section 35G of the Central Excise Act, 1944 (the Act for brevity) is directed against the order dated 30th July, 2021 passed by the Customs, Excise Service Tax Appellate Tribunal, Eastern Zonal Bench, Kolkat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterials. Show cause notice dated 27th April, 2017 was issued for the period 2012-13 to 2015-16 by invoking the extended period of limitation. The show cause notice alleged excess availment of Cenvat credit based on consumption of raw material as per stock account and recovery thereof along with interest and penalty under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Act. The assessee submitted their reply to the show cause notice dated 2 nd November, 2017 stating that the assessee has three units within the same manufacturing complex having single registration and it uses common raw material such as pre-form, essence and sugar in manufacturing aerated beverages and other fruit based drinks in all its units. Fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire demand is based on incorrect interpretation of consumption figures as per stock accounts maintained by the assessee for all these three units under the same excise registration and showing inter unit movement of raw material between the same unit namely, consumption as per ER 6 returns filed by the assessee for the years 2012-13 to 2015-16 without any substantive allegation. Further, the assessee contended that the adjudicating officer had, in fact, discussed the inter unit transfer issue of raw material and erroneously confirmed the demand without assigning any reason. Further, the assessee submitted that they have provided detailed reconciliation before the adjudicating officer which was not correctly interpreted. Thus, it was st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the registers clearly show that raw materials are used in all three units of the assessee under the same excise registration in the same manufacturing complex. Further, the tribunal has pointed out that the department has not objected to the inter unit transfer of input which was the consistent case of the assessee. The tribunal also examined the sample stock account for pre-form submitted by the assessee and, in fact, a screen shot of the said stock account has been incorporated in the order passed by the tribunal. After examining the facts and figures in the said stock account, the tribunal pointed out that there is inter unit transfer from unit-3 to unit-1 which is included in the total issued quantity of unit-3; whereas the same i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther, with regard to invoking the extended period of limitation, the tribunal found there is absolutely no justification to do so and there is no explanation given by the department for the gross delay in initiating proceedings. Thus, we find that the learned tribunal has examined the factual position and rightly noted that the show cause notice was issued by the adjudicating authority based on assumption and presumption without conducting any investigation and enquiry. Furthermore, the assessee was able to satisfy the tribunal by producing records and pointing out as to how the inter unit transfer had taken place which fact had been admitted by the adjudicating authority. Thus, for the above reason, we find that the revenue has n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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