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2015 (10) TMI 1229 - AT - Central ExciseDenial of CENVAT Credit - appellant cleared the input as such to their sister unit on payment of Central Excise duty equivalent to the amount of credit availed on such input - Held that - Respondents were engaged in the manufacture of excisable goods under Chapter No 28, 29 and 38 of the Schedule of the Central Excise Act, 1985 and availed Cenvat Credit on input. During the period November 2002 to June 2003, the appellant cleared the input as such to their sister unit on payment of Central Excise duty equivalent to the amount of credit availed on such input. We find that the Tribunal in the case of Silvasa Machines vs Commissioner of central Excise, Vapi 2012 (11) TMI 772 - CESTAT, AHMEDABAD decided the issue in favour of the appellant - No reason to interfere the order of the Commissioner (Appeals) - Decided against Revenue.
Issues: Appeal against order of Commissioner (Appeals) setting aside adjudication order regarding availing Cenvat Credit on input and clearing input to sister unit on payment of Central Excise duty.
The judgment pertains to an appeal filed by the Revenue against the order of the Commissioner (Appeals) setting aside an adjudication order. The respondents were engaged in manufacturing excisable goods under Chapter No 28, 29, and 38 of the Schedule of the Central Excise Act, 1985, and had availed Cenvat Credit on input. The appellant cleared the input to their sister unit, paying Central Excise duty equivalent to the credit availed. The Tribunal referred to the case of Silvasa Machines vs Commissioner of Central Excise, Vapi, where the issue was decided in favor of the appellant. The Tribunal highlighted a Circular by the Board regarding valuation of goods/inputs removed as such from the factory, stating that the Cenvat credit of Central Excise duty should be reversed when inputs are removed to sister concerns without processing. The Tribunal found no reason to interfere with the Commissioner (Appeals) order based on the Silvasa Machines case and rejected the Revenue's appeal. In summary, the judgment revolves around the issue of availing Cenvat Credit on input and clearing the input to a sister unit on payment of Central Excise duty. The Tribunal relied on the precedent set in the Silvasa Machines case and a Circular by the Board to support its decision to reject the Revenue's appeal.
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