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TMI Blog2023 (10) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... the period 2006- 07 to 2008-09 and 122.136 MT remained as opening balance. The Appellant contented that all the moulds purchased during the material period were put into use during the relevant period. There are force in the submission of the Appellant that after receipt of the Moulds, the same were utilized in the manufacture of finished goods namely, MS ingots and in the process of manufacture, the C.I. moulds were exhausted, and ultimately, the same were melted along with other raw materials for manufacture of the finished goods - there is no provision in the Cenvat Credit Rules, 2004 to reverse the credit availed on capital goods after they were put into use in the manufacture of final products, even if they are worn out or damaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove, the Appellant is not required to reverse the Cenvat credit availed on the capital goods, M.I. Moulds. Since, the credit is not liable to be reversed, there is no liability of interest or penalty. Accordingly, the penalty imposed in the impugned order is also set aside. Appeal allowed. - HON BLE MR. ASHOK JINDAL, MEMBER ( JUDICIAL ) And HON BLE MR. K. ANPAZHAKAN MEMBER ( TECHNICAL ) Shri Ajay Sanwaria, Counsel for the Appellant Shri P. K. Ghosh, Authorized Representative for the Respondent ORDER PER K. ANPAZHAKAN : M/s East India Holding Pvt. Ltd., Durgapur, are engaged in manufacture of excisable goods M.S.Ingots, Billets etc. in their factory. A Show Cause Notice dated 27.01.2011 was issued to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest and penalty. 3. In their submissions, the Appellant contented that all the moulds purchased during the material period were put into use during the relevant period. They submitted that after the use of C.I. Moulds, the same become damaged and accordingly consumed in their factory by melting the same along with other raw materials for the manufacture of their finished goods. They further submitted that the receipt and consumption of C.I. Moulds had been duly accounted by them in their factory in the C.I. Moulds Register. The C.I. Moulds Register is periodically verified by the Range Superintendent and no objection was ever raised by the Superintendent. The Appellant submitted that the demand notice was issued alleging removal of 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the records. 7. We find that the entire demand is confirmed against the Appellant on the ground that the Appellant, though received the C.I. Moulds and availed the Cenvat credit, but cleared the same clandestinely in the guise of captive consumption. We find that the applicant were maintaining the Mould Register, wherein receipt/consumption of the CI Moulds were duly entered. From the Mould register, we find the Appellant has received 434.644 MT of C.I.Mould during the period 2006- 07 to 2008-09 and 122.136 MT remained as opening balance. The Appellant contented that all the moulds purchased during the material period were put into use during the relevant period. They submitted that after the use of C.I. Moulds, the same become damaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose were cleared clandestinely and hence demanded the Cenvat credit availed on such Moulds.. We observe that non availability of the moulds in the stock or physical absence of goods, cannot be a reason to allege clandestine clearance. There must be positive evidence available on record to substantiate the allegation of clandestine clearance. In the present case, the department has not brought in any evidence to establish clandestine clearance of the used C.I. Moulds. 10. The Appellant contended that these mould were capital goods on which Cenvat credit has been availed. Admittedly, when the credit in respect of these capital goods was availed, the same was in order. These capital goods have been put to use for a number of years, when th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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