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TMI Blog2018 (5) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... to M/s Electrotherm India Ltd., which cannot be in any case more than the duty paid by the input manufacturer, M/s Faraday Shop the matter needs to be remanded to the adjudicating authority to ascertain the said fact. Appeal allowed by way of remand. - E/780-781, 1354/2010-SM - A/14026-14028/2017 - Dated:- 25-10-2017 - DR. D.M. MISRA, MEMBER (JUDICIAL) For Appellant: Mr. S.J. Vyas (Advocate) For Respondent: Mr. S.K.Shukla (A.R.) Per: Dr. D.M. Misra: These three appeals are filed against respective orders in appeals passed by the Commissioner of Central Excise (Appeals), Ahemedabad. 2. Briefly stated facts of the case are that during the course of visit of the factory of the appellant, M/s Alpha Nippon Innovative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ippon Innovative Ltd. alleging that the invoices issued by M/s Alpha Nippon Innovative Ltd. are not valid as no manufacturing activity was carried out in their premises nor they had issued invoices in the capacity of a Registered dealer. Consequently, cenvat credit of ₹ 34,26,154/- which was debited during the course of investigation on 17.01.2007, was proposed to be denied and appropriated by issuing Show Cause Notice dated 19.02.2009. Both the Show Cause Notices were adjudicated by the respective authorities. In the adjudication proceeding, the demands were confirmed and penalty of equal amount imposed on each of the appellant M/s Alpha Nippon Innovative Ltd. M/s Electrotherm (India) Ltd.; personal penalty on Sh. Anil A Patel, Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some value addition and sale to M/s M/s Alpha Nippon Innovative Ltd. resulted into contravention of the provisions of the Cenvat Credit Rules, 2004, but the credit of duty paid, on such items, by the manufacturer M/s Faraday Shop cannot be denied to M/s Electrotherm (India) Ltd., who had duly received the said goods and used in or in relation to the manufacture of the finished goods. It is his contention that whatever credit availed by M/s Alpha Nippon Innovative Ltd. on the Hydraulic Cylinders and Hydraulic Power Pack had been paid while raising excise invoices in favour of M/s M/s Electrotherm (India) Ltd. Therefore, the demand of ₹ 26,56,195/- of the credit availed against the invoices of M/s Faraday Shop, cannot be sustained a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellant M/s Alpha Nippon Innovative Ltd. had availed credit of the duty paid by the manufacturer M/s Faraday Shop on the inputs, namely, hydraulic cylinders and hydraulic power pack without receiving the said inputs in their factory premises, but raised invoices with marginal value addition in favour of M/s Electrotherm (India) Ltd., who ultimately availed the credit on the amount of duty paid by M/s Alpha Nippon Innovative Ltd, on receiving the inputs directly from the factory of the input manufacturer M/s Faraday Shop, but on the invoices issued by M/s Alpha Nippon Innovative Ltd.. It is claimed by the Ld. Advocate for the appellants that the entire quantity of inputs manufactured and cleared by M/s Faraday Shop had been recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admissible to them. However, the credit availed by M/s Alpha Nippon Innovative Ltd. was ₹ 26,56,195/- whereas the cenvat credit availed by M/s Electrotherm (India) Ltd. was ₹ 34,26,154/-. Attributing to the said difference in the back drop of the admissibility of credit to M/s Electrotherm (India) Ltd, the Ld. Advocate submitted that it is not due to the amount of duty paid on the enhanced value of the inputs by M/s Alpha Nippon Innovative Ltd. but due to error in computation of the demand against M/s Electrotherm (India) Ltd. Therefore, to ascertain the exact amount of credit admissible to M/s Electrotherm India Ltd., which cannot be in any case more than the duty paid by the input manufacturer, M/s Faraday Shop the matter nee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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