9911796707
TMI Blog2010 (4) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of intelligence gathered, department's preventive wing visited appellant's factory on 21-3-2007. On verification of their records, it was noticed that appellants had wrongly availed Cenvat credit on 4 capital goods which were shifted to M/s. Aditya Engineering, without reversing the appropriate Cenvat credit, amounting to Rs. 1,50,671/-. It was also noticed that appellants had wrongly availed service tax credit of Rs. 5,294/-, on telephone charges and security services, used by M/s. Aditya Engineering. Appellants agreed the same and paid vide Cenvat account entry Nos. 871 & 872 dated 21-3-2007. Accordingly a show cause notice dated 21-8-2007 was issued demanding the same along with interest and penalty. The appellants contended as foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit for manufacture of similar final products as in the parent unit, no duty is required to be paid/reversed by them. 2.1 The Adjudicating Authority's order was challenged by the appellant as well as by the Revenue before the learned Commissioner (Appeals). Learned Commissioner (Appeals) after granting a personal hearing, rejected the appeal filed by the Revenue as well as filed by the appellant. Aggrieved by such an order, appellant is before the Tribunal. Revenue has not filed any appeal against such an order. 3. Learned Counsel submits that the denial of Cenvat credit on the capital goods which are sent to a job worker is incorrect. It is his submission that the said job worker is one of the units of the same management and hence mov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st issue involved in this case is whether the lower authorities were justified in seeking reversal of Cenvat credit and capital goods which were found in the job workers premises. It is undisputed in this case, that the said job worker M/s. Aditya Engineering is doing job work for the appellant. It is also undisputed that the entire job worked material from M/s. Aditya Engineering comes to the appellant for use in the further manufacturing of excisable products. I find that the provisions of Rule 4(5)(a) very clearly envisages eligibility to Cenvat credit on the inputs or capital goods which are sent to a job worker. The only condition in Rule 4(5)(a) is that the said capital goods has to be received back within 180 days of that being sent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 47 (Tri.) = 2008 (84) RLT 576 (CESTAT-Mum.) will also cover the issue in favour of the assessee. 6. Accordingly, respectfully following the ratio as laid down by the cases cited hereinabove and also on the facts of the case, I set aside that portion of the impugned order which upheld the reversal of the Cenvat credit on the capital goods which were removed to job worker's premises. 7. As regards the Cenvat credit on the service tax paid on the telephone charges and security services utilized by the job workers, I find that such credit is not eligible for the appellant. The impugned order to the extent it upholds the denial of service tax credit is right and the findings of the learned Commissioner (Appeals) are correct. Since the amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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