2012 (8) TMI 685

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..... spondent is engaged in the manufacture of automotive cold forgings and motor vehicle parts falling under Tariff Heading 7326 and 8708 of the Central Excise Tariff Act, 1985 and are availing the Cenvat credit under Cenvat Credit Rules, 2004. During 2004-2005 and 2005-2006, they had paid a sum of Rs. 62,50,389/- to their collaborators namely M/s. Somic, Japan and Lemforder, Germany as royalty. They .....

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..... issued to the Respondent. In the Adjudication order, the Adjudicating Authority concluded that the service in question is input service used in the manufacture of their final product. However, the Adjudicating Authority concluded that TR-6 challan is not a valid document on which they could take credit. Accordingly, he disallowed the credit of Rs. 6,81,953/- and also imposed a penalty equal to the .....

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..... ing credit. 3. Heard arguments of DR and perused the record. 4. I do not find any merit in the argument that technical know-how for which royalty has been paid is not an input service for manufacture of final product because products with required quality could not have manufactured without technical know-how. If it is so possible they would not have been incurring such expenditure. Th .....

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