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TMI Blog2003 (4) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... ul Baranwal, SDR, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. - These are six applications for stay of recovery of Central Excise duty and penalty as under: Name Duty Penalty Krishna Maruti Rs. 1,42,03,569 Rs. 36,00,000 Kalyani Brakes Ltd. Rs. 51,62,275 Rs. 13,00,000 Mark Auto Indus. Rs. 63,02,137 Rs. 16,00,000 Brakes India Ltd. (Plant I) Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who are applicants here for manufacture, assembly of further components; that at the time of sending these imported components Maruti reversed the entire CENVAT credit taken on the components at the rate of 40% and paid the duty accordingly; that based on these invoices the vendors took CENVAT credit of duty paid on the components; that the Commissioner has disallowed the Modvat credit on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the inputs are removed as such the credit originally taken on the inputs is required to be reversed in its entirety. He, further, mentioned that five Member Bench of the Appellate Tribunal in Commissioner of Central Excise v. Asia Brown Boveri [2000 (120) E.L.T. 228 = 2000 (39) RLT 575] has affirmed the decision in American Auto Service and has held that where the inputs are removed as such, ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Senior Departmental Representative, reiterated the findings as contained in the impugned Order and emphasized that as per provisions of Rule 57AB(1)(b) of the Central Excise Rules, 1944 when inputs are removed from the factory the manufacture of the final products has to pay the appropriate duty of excise leviable thereunder as if such goods or capital goods have been manufactured in the said f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the admissibility of Modvat credit of duty by the person using it in the manufacture of final product. We are, therefore, of the view that in the terms of case law relied upon by the learned Advocate, a strong prima facie case has been made out for staying the recovery of the entire amount of duty and penalty from all the Applicants. We Order accordingly. All the matters will come up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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