9911796707
TMI Blog2008 (1) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... Member (J) [Order per: D. N. Panda, Member (J)]. -1. The short question that arises in this Appeal is whether excise duty amounting to Rs. 1,79,55,554.00 (Rupees One Crore Seventy-Nine Lakh Fifty-Five Thousand Five Hundred and Fifty-Four only) was recoverable for the credit of duty taken by the Appellant on the input received on stock transfer from another unit of the Appellant group, without purchase by the appellant or sale by that unit, under Rule 57AH of Central Excise Rules, 1944. 2.1 Learned Counsel Shri Ravi Raghwan, appearing for the Appellant submitted that recovery that was sought by the impugned order was uncalled for for the following reasons :- (1) Conditions for availing credit on inputs are contained in rules ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . reported at 2007 (215) E.L.T. 489 (S.C.). The Apex Court held that show cause notice being foundation of a proceeding, if that was baseless for no sanction of law to deny the benefit, proceeding shall not proceed against the Appellant. Although the judgment was delivered by Hon'ble Apex Court under the earlier Rule 57CC of Central Excise Rules, 1944, whether sale was pre-requisite for availing modvat credit in respect of stock transfer to one unit by another, the ratio laid down in the Judgement governs the field and applies to the Appellant. He specifically drew attention of the Bench to definition of "input" under Rule 57AA of Central Excise Rules, 2000 and submitted that said "input" is not required to be "purchased" by a unit claimin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth sides in the manner below. 4.3 Relevant period involved in the proceeding was April, 2000 to March, 2002 raising aforesaid demand on the allegation that input received by one unit from its sister unit were not entitled to CENVAT credit. There is nothing on record to state whether inputs so received were not used in manufacture. Also record does not demonstrate that input had not undergone suffering appropriate duty before procurement. The order of adjudication also fails to exhibit that "purchase" is an essentiality to claim CENVAT credit under law even if the term "procurement" being substituted in Rule 7(4) of CENVAT Credit Rules, 2002. There is no doubt that Notification No. 13/03, dated 1-3-2003 has substituted the word 'procure ..... X X X X Extracts X X X X X X X X Extracts X X X X
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