9911796707
TMI Blog2015 (8) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... VAT credit of Rs. 23,85,798/- availed on Old Draw Texturising machine in dismantled condition, received under cenvatable invoices issued by the supplier M/s. Gokulanand Texturisers Pvt. Limited. The said supplier purchased the machineries in the year 1998 and after use, supplied to the appellant in dismantled condition under the cover of invoice Nos. 276 dated 08.4.2005, 643 and 644 both dated 17.4.2005 and 303 dated 22.6.2005. The adjudicating authority held that the machineries were very old i.e. purchased by M/s. Gokulanand Texturisers in the year 1998 and therefore, it is no longer remained in a position of being reused as fresh parts (inputs) for manufacture of new machines. The adjudicating authority confirmed the demand of CENVAT cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y observed that the goods were old one and can not be used in the manufacture of final products and the order of the Commissioner (Appeals) can not be treated as beyond the scope of show cause notice. It is further stated that CENVAT credit is not available on the waste and scrap which can not be used in the manufacture of final product. 4. After hearing both sides and on perusal of the records, I find that the appellant received the goods accompanied with the Central Excise invoices and availed CENVAT credit as under:- S/No. Invoice No./ Date Description shown in invoice (1) 276/08.04.2005 80 Position - Air DT Machine assemblies in dismantled condition (2) 643/17.04.2005 80 Position - Air DT Machine assemblies in dismantled condi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds were too old to be used as inputs in the new textile machinery and the said goods were therefore neither their inputs nor their capital goods entitling them to the CENVAT credit. I find myself in agreement with the above views of the adjudicating authority. I find that the said goods were almost seven years old and no prudent manufacturer will use such old parts in the new machines as the same will affect its efficiency and durability and will result in frequent repairs. Further in the units engaged in the manufacturer of machines the inputs are stocked and accounted for in terms of different parts. Even nut bolts are separately stocked and accounted for. Apparently, nothing of this sort has been done in this case. There is no detailed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s find support from the fact that since the said texturising machines were basically waste and scrap, the same should have been cleared on payment of duty equivalent to transaction value instead of the duty equivalent to the CENVAT credit taken as has been done in this case. It is worth mentioning here that the supplier in this case has paid the duty from their capital goods CENVAT credit account and not from PLA. The submissions made by the appellants are therefore vague and without any evidence. The said credit is thus found to have been taken with malafide intention with intent to evade payment of duty and as such confirmation of demand of duty, interest and imposition of penalty in the original order is therefore fair and just." 6. I d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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