9911796707
TMI Blog2009 (1) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... This is an appeal filed by M/s. Henkel India Ltd. (HIL), against an order of the Commissioner of Central Excise demanding an amount of Rs. 8,79,757/- from them under Rule 14 of the Cenvat Credit Rules, 2002 (CCR), read with proviso to Section 11A(1) of the Central Excise Act, 1944 (the Act), demanding interest of Rs. 1,05,150/- on the above amount under Rule 14 of CCR read with Section 11AB of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of limitation, the Commissioner found that the appellants had removed inputs without paying back the credit availed to the exchequer when the factory was leased out to HSIL. HIL had suppressed the fact of removal of inputs to the lessee of the factory, HSIL and had not paid back the credit due to the exchequer. The impugned order came to be passed by the Commissioner on the above finding. 3. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stainable also for the reason that the Show Cause Notice had invoked larger period without justification. The department was aware that HIL had wound up operations as a central excise assessee immediately on leasing the factory to HSIL. HIL had surrendered the registration and intimated the fact to the department in 2004. The demand notice issued in the year 2006, therefore, was hit by limitation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e there had been no removal of inputs/capital goods as contemplated under Rule 9 and 49 of the CER. (ii) Bilt Industrial Packaging Co. Ltd. v. CCE, Salem - 2007 (216) E.L.T. 217 (Tri.-Chen.) Deciding the dispute as to the liability of an assessee to pay back to the exchequer the credit availed on inputs and capital goods when they were transferred along with the factory at the time of its sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Jamna Auto Industries Ltd. v. Commissioner (supra). The common ratio of these judicial authorities is that credit availed on inputs and capital goods is not recoverable as long as they are not removed from the factory and are used in or in relation to manufacture the final products. This ratio applies even in cases, where the factory is transferred on lease like in the subject case. In the lig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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