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TMI Blog2018 (6) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... oval of capital goods under Rule 4(5), the capital goods should be returned back within 180 days. In the cases where capital goods are returned within 180 days, Rule 4(5)(a) provides that if there is a delay beyond 180 days, the assessee is required to reverse the credit, but subsequently, as and when the capital goods are received, they are entitled for the recredit. So, even if there is a delay and the capital goods were received back, the appellant shall be entitled for the credit and, therefore, no demand will exist. It has been accepted by appellant that all the records were not produced before the original authority regarding the movement of capital goods for the reason that the capital goods which were not returned within 180 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck within 180 days. Therefore, the demand of cenvat credit was confirmed, equal penalty was imposed and equal penalty was also imposed on unit No.2 and a penalty of ₹ 25,000/- was also imposed on the director of the appellant company. Being aggrieved by the order-inoriginal, all the appellants filed appeals before the Commissioner (Appeals) who upheld the order-inoriginal and dismissed the appeals. Therefore, the appellants are before me. 2. Shri Sanjay Dwivedi, learned counsel appearing on behalf of the appellants, submits that there is no procedure prescribed for movement of capital goods under Rule 4(5)(a). Admittedly, the appellant s unit No.1 sent the capital goods to unit No.2 under the cover of challan which is sufficient co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, such removal is clearly covered under Rule 4(5)(a) as the appellant s unit No.1 has admittedly issued the challan. In case of removal of capital goods under Rule 4(5), the capital goods should be returned back within 180 days. In the cases where capital goods are returned within 180 days, demand is not sustainable. Rule 4(5)(a) provides that if there is a delay beyond 180 days, the assessee is required to reverse the credit, but subsequently, as and when the capital goods are received, they are entitled for the recredit. So, even if there is a delay and the capital goods were received back, the appellant shall be entitled for the credit and, therefore, no demand will exist. It has been accepted by the learned counsel that all the records ..... X X X X Extracts X X X X X X X X Extracts X X X X
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