9911796707
TMI Blog2019 (7) TMI 1774X X X X Extracts X X X X X X X X Extracts X X X X ..... read with provisions of Section 11A of Central Excise Act (for short Excise Act) along with equivalent amount of penalty under Rule 15(2) of Credit Rules read with Section 11AC of the Excise Act has been confirmed. The period of dispute is from 2006-07 to 2008-09 regarding the admissibility of Cenvat Credit on various input services and capital goods alleged to be exclusively used in the manufacture of exempted products, on invalid documents (endorsed bill of entry), non production of documents, and the capital goods that were put to use and on items that were used in the fabrication of structure for support of capital goods. 2. The Appellant is engaged in manufacture of industrial gases including liquid Nitrogen, liquid Oxygen (industria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on the ground that the same was used for storage of medical grade Oxygen which is exempt. Total amount of Cenvat Credit proposed to be denied works out to Rs. 26,11,200/-. The adjudicating authority denied the credit on the ground that this storage tank is being used for storage of medical grade oxygen exclusively which is exempted from payment of duty. Also the store record maintained by the Appellant does not justify that this tank was ever used for storing of industrial grade liquid Oxygen which is chargeable to central excise duty. The Appellant however, rebutted the claim of Department on the ground that initially during the year 2006, when they were not manufacturing the medical grade Oxygen, storage tank was used for storage of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 009 before the Appellant applied for area based exemption on 10.06.2003. The amount on this score is Rs. 18,01,057/-. Learned Adjudicating authority finding is that capital goods in question were not put to use as on 01.01.2009 post which all the clearances were exempted. Thus, Rule 6(4) of the Credit Rules applies on these capital goods and thus credit as availed was held to be not admissible. Learned Advocate contests the above finding on the ground that the cenvat credit is to be determined at the time of receipt of goods and not thereafter. Once cenvat credit is admissible at the time of receipt of the capital goods the same cannot be denied for the subsequent use for manufacture of exempted goods. This issue is settled by the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtion of the impugned order is also set aside by extending benefit to the Appellant. 9. The other ground on which the cenvat credit amounting to Rs. 7,49,756/- denied to the Appellant is on account of the fact that the Bills of Entries is not in the name of the Appellant (i.e. unit at Roorkee) but was in the name of Alwar Unit, and thus no valid document under Rule 9(1)(c) of the Credit Rules. Learned Adjudicating Authority held that there is no dispute regarding the receipt of the goods in their Roorkee Unit, however, the same as per order impugned is not valid document under Rule 9(10(c) of Credit Rules. The Commissioner did not follow the CBEC Circular dated 14.05.1996, which permitted the credit on endorsed bill of entry only if the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustainable and, therefore, we set aside the same and allow the appeal on that score as well. 12. The last issue is denial of cenvat credit amounting to Rs. 20,10,023/- on the ground for non production of the documents at the strength of which such credit were availed under the Credit Rules. The Appellant does not dispute the fact that the documents were not made available to the audit team on account of the fact that the same were old and not traceable. Ld. Counsel as submitted the compilation of such document for our perusal. We have perused some of these invoices / bill of entries and other relevant documents and find that input/capital goods imported or ingeniously procured have been received by the Appellant and the credit has been ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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