2014 (11) TMI 672

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.... Per : B.S.V.MURTHY The brief facts of the case are as under: The appellants are engaged in the manufacture and clearance of excisable goods viz., PET bottles falling under Chapter Heading 39233090 of the Schedule to Central Excise Tariff Act, 1985 and are availing the facility of CENVAT on inputs and capital goods. During the course of audit of their books of accounts by the departmental audi....

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....oved the above said capital goods to M/s. Pearl Polymers Limited, Solan, Himachal Pradesh, their own unit in terms of rule 3(5) of CENVAT Credit Rules, 2004 under clearance Invoice No.227 dated 20.4.2006 issued in terms of Rule 11 of Central Excise Rules, 2002 on payment of the total aggregate of all the duties they had hitherto availed as credit of CENVAT. On being pointed by the audit team duri....

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.... rejected by the lower authorities. 2. Learned CA on behalf of the appellants submitted that the capital goods received by the appellants were transferred to their own unit in Himachal Pradesh which was availing area based exemption. He admits the mistake in availing the credit of BCD also but submits that as soon as the same was pointed out, they had reversed the entire amount of credit. Subsequ....

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....und on the ground of unjust enrichment cannot be sustained. There is also no dispute that the goods were cleared to their own unit. Surprisingly in the findings of the Commissioner (A), another ground has been taken that the appellants have cleared the goods under the scheme of area-based exemption which is also totally wrong. Appellant's unit which cleared the capital goods was not availing in ar....