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TMI Blog2018 (12) TMI 1782X X X X Extracts X X X X X X X X Extracts X X X X ..... ble - The Tribunal s decision in the case has also been upheld by the Hon ble Karnataka High Court in KARNATAKA SOAPS AND DETERGENTS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE [ 2010 (2) TMI 524 - KARNATAKA HIGH COURT] . Appeal dismissed - decided against Revenue. - E/480-481/2009 - FO/77267-77268/2018 - Dated:- 14-12-2018 - SHRI P. K. CHOUDHARY, MEMBER (JUDICIAL) AND SHRI V. PADMANABHAN, MEMBER (TECHNICAL) Shri H. S. Abedin, A. C. (A. R.) for the Revenue Shri T. Chandran Nair, Advocate for the Respondent ORDER The appellant was engaged in manufacturing of small packs of detergent from the Detergent Powder received in bulk from M/s. Hindustan Lever Ltd. (M/s. HLL). At the time of such stock transfer, they were ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n issued proposing to demand such credits in terms of Rule 7 (1)(b) of the Cenvat Credits, 2002. The Show Cause Notice mentions that the differential duty became payable in the hands of M/s. HLL in view of the under valuation detected by the department. 5. The Adjudicating Authority has made a distinction between the Cenvat Credit availed on the basis of supplementary invoices issued in the case of stock transfer and such invoices issued in respect of sale of inputs, otherwise. He was of the view that the transfer of goods from M/s. HLL to the Respondent was in the nature of stock transfer and hence, will be entitled to the Cenvat Credit in the hands of the Respondent. 6. The respondent has placed reliance on several case laws which h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturer or importer, in case additional amount of excise duties or additional duty of customs leviable under Section 3 of the Customs Tariff Act, has been paid, except where the additional amount of duty became recoverable from the manufacturer or importer of inputs or capital goods on account of any non-levy or short-levy by reason of fraud, collusion or any wilful misstatement or suppression of facts or contravention of any provisions of the Act or of the Customs Act, 1962 or the rules made thereunder with intent to evade payment of duty. (emphasis su pplied) A very careful reading of the above rules shows that the bar for availment of credit on supplementary invoices would operate only when the additional amount of duty becomes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicating authorities. Whatever duty is paid at Mysore on Sandalwood oil, the same is taken as Cenvat credit at Bangalore. The duty on the finished products namely, toilet soaps is discharged under Section 4A on the basis of MRP. Since the value of soap takes into account the escalated cost of the sandalwood oil there cannot be any short payment of duty on the toilet soaps at Bangalore. In effect, the Government did not suffer any loss. In view of the above reasons there is absolutely no justification to deny Cenvat credit taken by Bangalore factory based on supplementary invoices issued by Mysore factory. Hence, the OIO passed by Commissioner of Central Excise Bangalore, has no merits. The same is set aside. Hence, we allow the appeal E/277 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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