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TMI Blog2013 (5) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... neither the finished goods nor raw materials were found present. All the manufacturing activities and the records of Appellant No.2 were being maintained at the factory premises of Appellant No.1. There is nothing on record to show that any goods manufactured at the premises of Appellant No.1 were not made out of raw materials received in the name and address of Appellant No.2. It is established from the above observations that Appellant No.1 and Appellant No.2 have not followed the Central Excise procedures but the inputs have been completely used in the manufacture of final products which are cleared on payment of duty. It is settled law that for failure to follow the procedures, cenvat credit cannot be denied - thus cenvat credit wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the inputs received in their name without reversing the Cenvat credit and consequently manufacturing activity were carried out at the premises of appellant No.1 without following the Central Excise procedures and therefore, Central Excise duty liability for the goods cleared from the premises of appellant No.1 was required to be demanded and no Cenvat credit would be admissible to appellant No.2 for the relevant period. 3. The adjudicating authority passed the following order, confiscating the seized goods and confirming demands against Appellant No.1 and Appellant No.2 and also imposing penalty of Rs. 25 Lakhs upon Shri Manoj C. Phutane, Managing Director:- (A). M/s. Kala Enterprises (P) Limited, Kharadpada [Un-Registered Unit] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 36, 74, 244/- and Rs. 73, 486/- Education Cess totally amounting to Rs. 37, 47, 730/- (Thirty Seven Lakhs Forty Seven Thousand Seven Hundred Thirty only) under section 11 A(2) of the Central Excise Act, 1944. (7) I hereby confirm the demand of Central Excise Duty amounting to Rs. 14, 81, 952/- and Rs. 29,638/- Education Cess totally amounting to Rs. 15, 11, 590/- (Rupees Fifteen Lakhs Eleven Thousand Five Hundred Ninety only) under section 11A (2) of the Central Excise Act, 1944. (8) I impose penalty of Rs. 52, 59, 320/- (Rupees Fifty Two Lakhs Fifty Nine Thousand Three Hundred Twenty only) on M/s. Kala Enterprise (P) Ltd. Piparia, Silvassa under Rule 15 of the Cenvat Credit Rules, 2004. (9) M/s.Kala Enterprises (P) Limited, Pipa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e name and address of appellant No.2 properly and all the Central Excise procedures were followed by appellant No.2, in spite of the fact that manufacturing activities were being done at the premises of appellant No.1. It has also not been rebutted by investigation that Central Excise records required to be maintained by the registered unit, were not being maintained at the premises of appellant No.1 and proper invoices paying Central Excise duty were issued. It was the submission of the appellant that, since no case is made out by the department that there was any removal without discharge of proper Central Excise duty, there is no case for demanding duty and imposing penalty on appellant No.3. 6. It is clear from the facts on record tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied out on 08.11.2004. After the Central Excise registration meant for Pipariya unit (Appellant No.2) was amended suitably with the address of Kharadpada premises (Appellant No.1), there seems to be no demand of duty. As there is no evidence of diversion of inputs received at the factory premises of Appellant No.1, therefore, it has to be considered that inputs of appellants were received in the premises of Appellant No.1 where manufacturing activities were carried out and goods were finally cleared on payment of duty in the name and address of Appellant No.2. The entire inputs in the name of Appellant No.2 were thus received and used in the manufacturing of DG Sets at the factory premises of Appellant No.1 and cleared on payment of duty. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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