2009 (11) TMI 770

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....the Appellant. Shri V.V. Hariharan, JCDR, for the Respondent. ORDER M/s. Shinhan Plasto India Pvt. Ltd. (hereinafter referred to as SPIPL) are manufacturers of motor vehicle parts and avail Cenvat credit of raw materials and capital goods used in the manufacture of the final products. M/s. Hyundai Motor India Ltd. (hereinafter referred to as HMIL), who are manufacturers of passenger cars,....

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....was objected to by the department. SPIPL debited the Cenvat credit taken, on 8-1-2004. Meanwhile, HMIL instructed SPIPL to return the invoices dated 27-9-03 and re-issued a new set of invoices and SPIPL once again took Cenvat credit. SPIPL took credit of Rs. 56,54,547/- in Feb' 04 and Rs. 60,36,682/-, totalling to Rs. 1,16,91,230/- on the duty paid by HMIL through supplementary invoices. Credit av....

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....SPIPL and HMIL. The notice was adjudicated by the Commissioner of Central Excise who confirmed demand of Rs. 2,33,82,458/- on the ground that this amount was not eligible for availment of Cenvat credit by SPIPL and confirmed a demand of Rs. 1,16,91,230/- already availed as credit by SPIPL, together with interest and imposed penalties of Rs. 5 lakhs each on SPIPL & HMIL. Hence these appeals. 2. ....

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....ts or capital goods ... but the manufacturer can take the Cenvat credit again when the inputs or capital goods are received back in his factory. Rule 3(4) & (5) read as under :- 3(4) - 'When the inputs or capital goods on which cenvat credit has been taken, are removed as such from the factory, the manufacturer of the final products shall pay amount equal to the credit availed in respect of suc....