2013 (12) TMI 167

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....e appellant availed the Cenvat credit of the capital goods procured as per the procedure i.e. first 50% in the year of purchase and the remaining 50% in the subsequent years. An investigation which was carried out, it appeared that the capital goods on which credit was availed were sent to their sister concerns situated nearby and the same were not returned back even after a lapse of 180 days from the date of clearance and no extension of time was sought by the appellant from jurisdictional Assistant Commissioner/Deputy Commissioner. Therefore, a show cause notice dated 30-8-2007 was issued to the appellant as to why an amount of Rs. 33,01,798/- should not be demanded and recovered along with interest and penalties be not imposed on them. T....

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....s submission that if other units of the appellant are the same, then the Cenvat credit can be availed at any one place. It is his submission that the first appellate authority has not set aside the penalty only on the ground that the appellant's unit No. 1 and 2 were not registered when the capital goods were transferred for doing job work. He would submit that the date of clearance of capital goods to sister concerns were during the period 1-6-2005 to 19-3-2006. It is his submission that the appellant's sister concerns were registered with the Central Excise Authority during the relevant period and would draw my attention to the fact as stated by them in their grounds of appeal and submit that the appellant had reversed the Cenvat credit f....

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....e capital goods on which Cenvat credit availed was removed/cleared from the unit where the credit was availed to their sister units within the same Commissionerate. 8. It is also undisputed that the appellant had enclosed closing balance of Cenvat credit lying in their accounts to substantiate their belief and also that the job workers/sister units of the appellant were their own unit i.e. termed as unit No. 2 and 3. 9. On the factual matrix as reproduced hereinabove, I find that the entire case can be decided on the question of revenue neutrality. When it is not disputed that the capital goods on which credit was availed was transferred/cleared for the purpose of doing job work to the appellant's own unit i.e. unit Nos. 2 & 3 within ....