9911796707
TMI Blog2013 (10) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... alty cannot be imposed on M/s. Chemical Sales, as it was for M/s. Hindustan Unilever Ltd. not to take Cenvat Credit on the basis of the invoices issued by an un-registered dealer - For some contravention of Rules by M/s. Hindustan Unilever Ltd., penalty cannot be imposed on M/s. Chemical Sales and as such imposition of penalty on them does not appear to be sustainable. Reversal of CENVAT Credit – Waiver of Pre-deposit - M/s. Hindustan Unilever Ltd. have reversed Cenvat Credit - But in respect of spare parts of capital goods they would be eligible for Cenvat Credit - However, as regards the Cenvat Credit on the basis of the invoices issued by M/s. Chemical Sales, M/s. Chemical Sales were neither a manufacturer nor a registered dealer, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .53,005/- in respect of spare parts of capital goods by treating them as inputs which accordingly to the Department was not admissible as spare parts of capital goods, could not be treated as inputs. After issue of Show Cause Notice, the Jurisdictional Assistant Commissioner confirmed the total Cenvat Credit demand of Rs. 2,06,028/- along with interest and besides this while penalty of equal amount was imposed on M/s. Hindustan Unilever Ltd., penalty of Rs. 1,53,023/- was imposed on M/s. Chemical Sales. On appeal being filed against Assistant Commissioner s order, the Commissioner (Appeals) vide order-in-appeal dtd. 20.04.13 upheld the Assistant Commissioner s order against which these appeals have been filed along with stay applications. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rer, this credit is inadmissible, as in term of the provisions of Rule 9 of the Cenvat Credit Rules, 2004, the invoices issued by the dealer who is not registered dealer are not valid documents for Cenvat Credit. As regards the Cenvat Credit of Rs. 53,005/- the same is in respect of the spares of capital goods and at the time of receipt of spares of capital goods, only 50% of this amount was available as Cenvat Credit. He, therefore, pleaded that so far as M/s. Hindustan Unilever Ltd. are concerned, the amount of Rs.53,005/- already reversed, is not sufficient for the hearing of the appeals. As regards M/s. Chemical Sales, since they had issued invoices without registration, the penalty has been correctly imposed on them as such their case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, the appellant, M/s. Hindustan Unilever Ltd. are directed to deposit an amount of Rs. 1,00,000/- within the period of eight weeks. This amount would be in addition to 53,005/- which is already deposited by them. On deposit of this amount within the stipulated period, the requirement of pre-deposit of balance amount of Cenvat Credit demand, interest and penalty imposed on the appellant would stand waived for hearing of their appeal and recovery thereof stayed. Compliance to be reported by M/s. Hindustan Unilever Ltd. on 25.10.2013 . As regards M/s. Chemicals Sales, the requirement of pre-deposit of penalty by them is waived for hearing of their appeal and recovery thereof is stayed till the disposal of the appeals. The Stay Applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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