2010 (4) TMI 481

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....goods, inputs and input services. On the basis of intelligence gathered, department's preventive wing visited appellant's factory on 21-3-2007. On verification of their records, it was noticed that appellants had wrongly availed Cenvat credit on 4 capital goods which were shifted to M/s. Aditya Engineering, without reversing the appropriate Cenvat credit, amounting to Rs. 1,50,671/-. It was also noticed that appellants had wrongly availed service tax credit of Rs. 5,294/-, on telephone charges and security services, used by M/s. Aditya Engineering. Appellants agreed the same and paid vide Cenvat account entry Nos. 871 & 872 dated 21-3-2007. Accordingly a show cause notice dated 21-8-2007 was issued demanding the same along with interest and....

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....apital goods in question had been transferred to their own unit for manufacture of similar final products as in the parent unit, no duty is required to be paid/reversed by them. 2.1 The Adjudicating Authority's order was challenged by the appellant as well as by the Revenue before the learned Commissioner (Appeals). Learned Commissioner (Appeals) after granting a personal hearing, rejected the appeal filed by the Revenue as well as filed by the appellant. Aggrieved by such an order, appellant is before the Tribunal. Revenue has not filed any appeal against such an order. 3. Learned Counsel submits that the denial of Cenvat credit on the capital goods which are sent to a job worker is incorrect. It is his submission that the said job w....

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....ions made at length by both sides and perused the records. The first issue involved in this case is whether the lower authorities were justified in seeking reversal of Cenvat credit and capital goods which were found in the job workers premises. It is undisputed in this case, that the said job worker M/s. Aditya Engineering is doing job work for the appellant. It is also undisputed that the entire job worked material from M/s. Aditya Engineering comes to the appellant for use in the further manufacturing of excisable products. I find that the provisions of Rule 4(5)(a) very clearly envisages eligibility to Cenvat credit on the inputs or capital goods which are sent to a job worker. The only condition in Rule 4(5)(a) is that the said capital....