9911796707
TMI Blog2019 (7) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... hruv Tiwari, Advocates for the Respondent-assessee ORDER PER C L MAHAR : The present appeal has been filed by the Department against Order-in-Appeal No. 254-255(SRM)CE/JDR/2017 dated 08.11.2017 passed by the Commissioner (Appeals), Jodhpur whereunder it has been held that the respondent-assessee is eligible for refund of the amount paid against the Cenvat Credit pertaining to one unit utilised by other separate unit for payment of duty on goods cleared prior to common single registration. 2. The brief facts of the case are that the respondent assessee was allotted a single contiguous piece of land measuring 471 acres by the Government of Rajasthan and commenced manufacturing of cement way back in 1981. The respondent-assessee undertook a major expansion of establishing a new grinding unit known as M/s. Manglam Grinding Unit (MGU). The MGU and the manufacturing facilities then existing were not only on the same piece of land but it was also connected by a private road within its leased land and common boundary wall. Though there was distance of approximately 2 kms between the MGU and the then existing manufacturing f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,00,00,000/- Against Cenvat credit utilised of Mangalam Grinding Unit (MGU) on direction of the anti evasion team 2 00002 dated 23.11.2013 4,29,992/- Against inter unit transfer of clinker from their unit MGU on direction of the anti evasion team 3 00002 dated 17.12.2013 2,50,00,000/- Against Cenvat Credit utilised of Mangalam Grinding Unit (MGU) 4 00003 dated 17.12.2013 1,43,00,000/- Against Cenvat credit utilised of Mangalam Grinding Unit (MGU 7,04,29,992/- 4. Thereafter, following developments have taken place with regard to this matter: (i) The appellant had challenged the revocation order dated 27.11.2013 be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the said Final order of the Tribunal dated 06.11.2015 for revocation of single registration before the Hon ble High Court of Rajasthan who vide order dated 25.05.2016 had dismissed appeal of the Revenue. (xii) The Tribunal vide its Order No. 53004/2017-Ex(DB) dated 23.02.2017 has allowed respondents appeal filed against order dated 10.07.2015 of Commissioner for disallowance of cenvat credit of ₹ 13,73,91,891/- and duty demand of ₹ 4,20,251/-. 5. On the basis of these developments and in view of Final Order No. 53004/2017-Ex(DB), dated 23.02.2017, the learned Commissioner (Appeals) has allowed a refund of amount deposited by the appellant as indicated in the preceding paragraphs. The Department has reviewed the order of learned Commissioner (Appeals) and stated that the amount of ₹ 7,04,29,992/- for which the Commissioner (Appeals) has held that it is now refundable was paid by the assessee against the Cenvat Credit so utilized irregularly for payment of duty on cement cleared from older unit. There is no provision in the Cenvat Credit Rules, 2004 that credit pertaining to one unit can be utilised for payment of duty on goods c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g up of MGU cannot be allowed to be taken in the original unit, since the inputs were procured and inputs services were utilized prior to 31.01.2014. 7. The procurement of capital goods as well as utilization of input services for setting up the MGU happened prior to setting it up. The question of registration of the completed unit comes up after the unit is set up and is ready to start manufacturing. It would be incorrect to deny the Cenvat credit on such capital goods and input services by taking the view that it has been availed prior to the date of registration. This position is too well settled for taking a contra view. It is on record that the appellant has approached the department on 30.08.2013 for formally amending the registration certificate for the original unit to include MGU. Further, since the MGU has been commonly registered as part of the main unit by issue of a common registration, any credit which would have been in the books of MGU would stand merged with that of the combined unit. There is no requirement in the Cenvat Credit Rules that prohibits a common Cenvat account for all the units comprised in one registration. We note that the Hon ble Madr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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