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TMI Blog2021 (10) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... ntial for manufacture of finished goods of the appellant, by way of goods manufacturing practices. Any input purchased by the manufacturer which are used in the factory for the manufacture of final products, are allowable as inputs, whether it forms part of the finished goods or not. Admittedly, the doors and windows have been used in the factory of the appellant for manufacture of good quality drugs. Accordingly, cenvat credit is allowable on the doors/window. GTA Services - revenue neutrality - HELD THAT:- The appellant have demonstrated that they have cleared goods to their sister concern by charging duty on the value of the goods (cost plus, 110% on cost) as per Rule 8 of Central Excise Rules, and such goods have admittedly been receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. (a) Less payment of duty on goods sold to sister concern by following the provision of Rule 8 of the Valuation Rule, 2000 - Demand was for ₹ 87,95,178/- (including cess). (b) Credit availed on doors and windows - ₹ 1,22,956/- (including cess) (c) Credit availed on annual maintenance charges paid to MPAKVN - ₹ 1,46,115/-. (d) Non-payment of duty on scrap cleared from the factory - ₹ 1,25,370/-. (e) Credit availed on outward freight paid for good cleared to sister concern - ₹ 1,77,610/-. 4. The appellant contested the show cause notice by filing their reply dated 15.03.2019 as well as further written submission at the time of personal hearing on 05.09.2019. The Adjudicating Authority dropped the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 943/4/2011-CX dated 29.04.2011. He further relies on the following ruling in the case of:- (i) Ion Exchange (I) Ltd. vs. CCE -2018 (12) GSTL 392 (Tri. Ahmd.) (ii) Alliance Global Services IT India (P) Ltd. vs. CCE &ST -2016 (44) STR 113 (Tri. Hyd.) (iii) Infosys Ltd. vs. CST, Bangalore -2015 (37) STR 862. 7.2 As regards GTA services availed and credit taken on goods transferred to sister concern , learned Counsel urges the following grounds and submissions as well as refer to the documents on record:- (a) Purchase order no. 4620064802 issued by the Goa unit of the company, to the Pithampur unit of the company, for the supply of goods for captive consumption. (b) Stock Transfer invoice no. 7117100050 dated 16.06.2017 issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e set aside on this ground alone. Admittedly, the appellant have incurred the GTA charges for transfer of their goods to the sister concern (owned by the same company), and such transport charges form part of the cost of goods of the appellant. It is further urged that in the facts and circumstances, no penalty is imposable. 8. Learned Authorised Representative Shri Mahesh Bhardwaj relies upon the findings in the impugned order. 9. Having considered the rival contentions, I hold that the appellant is entitled to cenvat credit on the doors and windows, which are admittedly essential for manufacture of finished goods of the appellant, by way of goods manufacturing practices. Any input purchased by the manufacturer which are used in the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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