9911796707
TMI Blog2018 (11) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... envat credit only after receipt of the sheets. There is no infirmity in such procedure. Rule 4 (5) of the Cenvat Credit Rules, 2004, provides for clearing the inputs for carrying out various processes. Rule 3(4)(b) of the Cenvat Credit Rules, 2004 provides that inputs on which cenvat credit have been availed may be cleared as such subject to reversal of the proportionate credit. Since slitting of coils into sheets does not amount to manufacture, for clearance of sheets received to SEZ Unit, the appellant was required to only reverse the proportionate credit. Since, there is no dispute that such reversal have been made, there is no scope for ordering payment of any other amount. The lower adjudicating authority appears to have proceede ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t) and at the time of receipt of such sheets, cenvat credit is availed on the Excise duty paid on H.R.Coils. The job workers slit the coils into sheets of various dimensions viz., 170 mm, 150 mm, 120 mm, 105 mm as well as 130 mm. A part from received sheets are consumed in Garia Unit in the manufacture of locknuts. Rest of the sheets are cleared to SEZ Unit on reversal of proportionate cenvat credit. The credit so reversed is claimed by the appellant as rebate considering the clearances to SEZ Unit as export, in terms of SEZ Act and Rules. 3. The Revenue Officers during inspection of the factory, upon scrutiny of documents, noticed that the width of the sheets used in the DTA Unit as well as SEZ Unit, were different. In fact, sheets were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of locknuts. He argued that the inputs are procured commonly for DTA Unit as well as SEZ Unit. He submitted that a portion of sheets is cleared to SEZ Unit and the cenvat credit availed has been proportionately reversed. As such, he refuted the allegation made by Revenue that the cenvat credit has been availed irregularly. (ii) Regarding the credit of service tax sought to be denied, he submitted that the service tax has been paid for procurement of inputs which are eligible as input services. He further submitted that the quantum of service tax ordered to be reversed has been incorrectly worked out. (iii) He also submitted that the Deputy Commissioner-in-Charge of the Appellant-Unit vide his subsequent order dated 06.06. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ennai : 2007 (214) ELT 40 (Tri.-Chennai) ; (b) KCP Ltd. Vs. CCEx., Chennai : 2013 (295) ELT 353 (S.C.) ; (c) Bhor Industries Ltd. Vs. Union of India : 2014 (299) ELT 281 (Bom.) ; (d) Crossword Agro Industries Vs. Commr. of Central Excise, Rajkot : 2014 (33) STR 185 (Tri.-Ahmd.). 7. Heard both sides and perused the records carefully. 8. As per facts of the case, the appellant has procured H.R.Coils from SAIL. The orders for such Coils have been placed to take into account the requirement of DTA Unit as well as SEZ Unit. The H.R.Coils so procured are initially sent to job workers for slitting to the appropriate width. Width of the sheets required in the DTA Unit, are different from the width required in the SEZ Unit. The job wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to the manufacture of the final product i.e. locknuts . For use in the process of manufacture, there is a need to slit the H.R.Coils into sheets of appropriate width for further use. Part of the H.R.Coils are slit into dimensions required for use in the SEZ Unit. As per facts on record, the appellant, instead of receiving the H.R.Coils in the factory and availing cenvat credit and subsequently sending them to job workers for slitting, has chosen to directly send the coils to the job workers for slitting and availed cenvat credit only after receipt of the sheets. We find no infirmity in such procedure. Rule 4 (5) of the Cenvat Credit Rules, 2004, provides for clearing the inputs for carrying out various processes. Rule 3(4)(b) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s procured by the assessee, which were exported along with the goods manufactured by the assessee. The Apex Court held that the modvat credit cannot be allowed for such machinery, which was not even unpacked in the assessee s premises. In the case of Bhor Industries Ltd. (supra), the Hon ble Bombay High Court had occasion to consider the case of certain resins procured for use in the manufacture of polyurethane. The credit for such resins, was disallowed by the Hon ble High Court for the reason that all such grades could never have been used in the manufacture. We find that these decisions deal with different facts and hence, are not applicable to the present case. 13. In view of the above discussions, we set aside the impugned order and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
