TaxTMI 
TaxTMI 
2010 (4) TMI 434
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....er passed by the Addl. Commissioner, Chandigarh on 25-6-2004 by which order, the Addl. Commissioner had confirmed the demand of Rs. 7,59,728/- under Rule 57U of the Central Excise Rules, 1944 read with Section 11A of the Central Excise Act, 1944 and also ordered recovery of interest and penalty of equal amount besides penalty of Rs. 50,000/- against the Executive Director, Shri M.K. Kapoor. The demand was confirmed on account of removal of the capital goods in violation of Rule 57-S(1)(ii) of the said Rules. 3. Ld. DR placing reliance in the judgment of the Karnataka High Court in the matters of CCE, Belgaum v. Associated Cement Co. Ltd. reported in 2009 (236) E.L.T. 240 (Karnataka), of the Apex Court in Commissioner of Central Excise, Del....
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.... may be removed after intimating the jurisdictional Asstt. Commissioner of the Central Excise and after obtaining dated acknowledgement of the same, from the factory for home consumption or for export on payment of appropriate duty of excise leviable thereon or for export under bond as if such capital goods have been manufactured in the said factory. 5. There is no dispute that the capital goods were received by the respondent for installation thereof in their factory premises during the period from February, 1995 to February, 1998; however, the said capital goods were subsequently leased out to M/s. Kamla Dials & Devices Ltd. under lease agreement dated 24-8-98 and in consonance with the said agreement, were handed over to the said compan....
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....ined by incorporating such provision of the law. If we read the term "removed" to mean physical removal of the goods from the factory and not necessarily by divesting the control over the capital goods, it would result in rendering the rule to be nugatory. 7. On perusal of the orders passed by the Tribunal either in Jamna Auto Industries Ltd. or Metzeller Automotive Profiles India Pvt. Ltd. or in Sri Chamun deshwari Sugars Ltd., the same nowhere disclose the above aspect to have been considered. In the absence of the consideration of the said aspect of the matter and the issue, those decisions cannot be said to be relevant for deciding the matter in hand and in that regard, ld. DR is justified in drawing our attention to the decision of th....
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....onsidered opinion that the Tribunal without application of mind and without proper appreciation of the said transactions in the light of the relevant provisions of the Central Excise Act and the Rules has allowed the appeal of the assessee-company and set aside the Order-in-Original passed by the Commissioner of Central Excise, Belgaum. In the circumstances, we answer the above question of law in the "negative' and against the assessee." 9. In Majestic Auto Ltd., the Tribunal while dealing with the issue regarding the effect of removing the modvatted capital goods from the factory premises under Rule 57U and 57-S held that, "as the premises in which the capital goods are installed has now been leased to the Appellants No. 2 who are now in....