2004 (9) TMI 514 - AT - Central Excise

Summary

Issues Involved:
Availment of Cenvat credit of duty paid on capital goods transferred between factories after a lapse of time.

Analysis:

The issue in this appeal pertains to the availment of Cenvat credit of duty paid on capital goods transferred from one factory to another after a certain period. The Tribunal considered a similar issue for the same assessee in a previous case where the appellants' claim for credit was upheld. The Tribunal noted that the capital goods were imported under specific Bill of Entry numbers, duty was paid, and the goods were initially received at the Pune unit. The appellants did not take the Cenvat credit at Pune for certain machines covered under different Bill of Entry numbers. However, the goods were later moved to the Noida unit, and the Revenue disallowed the credit due to the absence of proper duty paying documents as per Rule 57AE of the Central Excise Rules.

The Tribunal acknowledged that the removal of capital goods from Pune to Noida was undisputed, and the challenge to Cenvat credit was primarily based on the lack of appropriate documents and the prior credit taken at Pune. The appellants argued that the goods were shifted with proper documentation, including challans referencing duty payments under corresponding Bill of Entry numbers. The Tribunal found merit in the advocate's submission that these challans should be accepted as valid documents for the transfer of capital goods, especially since their receipt at the Noida unit was confirmed.

Regarding the specific Bill of Entry numbers, the Tribunal examined the Range Superintendent's report, which indicated that the credit availed at Pune was limited to certain machines and not the entire duty amount in question. The appellants had reversed part of the credit in Pune for some machines, and the evidence presented supported their claim that the disputed credit amount was not availed in Pune. Consequently, the Tribunal allowed the appeal, determining that the appellants were eligible to claim credit at their Noida unit for the relevant Bill of Entry numbers.

Based on the precedent set by the previous order and the detailed analysis of the facts and submissions in this case, the Tribunal concluded that the appellants were entitled to a Cenvat credit of Rs. 55,09,179. The impugned order confirming the duty amount and imposing a penalty was set aside, and the appeal was allowed in favor of the appellants.