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TMI Blog2021 (12) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant has 8 manufacturing units; out of which, three units are located at Padi, Polambakkan and Gurgaon are engaged in the manufacture of various parts like show assembly, servo sub-assembly, TMC assembly, wheel cylinder assembly and caliper sub-assembly; these goods are cleared to their Gurgaon unit on payment of excise duty under stock transfer invoices. The Department issued a show cause notice proposing to deny Cenvat credit for the impugned period alleging that the credit of duty paid on inputs received from their sister concern under stock transfer invoices, is not admissible under Rule 7(4) of the Cenvat Credit Rules, 2001/2002 and that the said inputs are not purchased. The show cause notice further alleges that the said Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it can be availed on inputs on receipt of inputs or capital goods in the factory of the manufacturer. The provisions do not envisage purchase to be a pre-requisite; Rule 7(4) is only a procedural rule and provides for the maintenance of records and does not deal with admissibility of credit. She submits that Karnataka High Court in the case of Karnataka Soaps & Detergents Ltd. Vs. CCE, Mysore - 2010 (258) ELT 62 (Kar.) held that Rule 7is illustrative in nature and cannot place fetters on Rule 3. 4. Learned Counsel submits that the issue is no longer res integra and has been decided by the Tribunal in the case of Exide Industries Ltd. Vs. CCE, Haldia - 2008 (226) ELT 249 (Tri.-Kolkata); Tribunal allowed the credit of duty paid on inputs rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Exide Industries Ltd. (supra) have held as follows: "4.3 Relevant period involved in the proceeding was April, 2000 to March, 2002 raising aforesaid demand on the allegation that input received by one unit from its sister unit were not entitled to CENVAT credit. There is nothing on record to state whether inputs so received were not used in manufacture. Also record does not demonstrate that input had not undergone suffering appropriate duty before procurement. The order of adjudication also fails to exhibit that "purchase" is an essentiality to claim CENVAT credit under law even if the term "procurement" being substituted in Rule 7(4) of CENVAT Credit Rules, 2002. There is no doubt that Notification No. 13/03, dated 1-3-200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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