2015 (6) TMI 224

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....MS Technologies Limited is allowed. Miscellaneous applications are disposed of. After dispensing miscellaneous applications the appeals are taken up for disposal. 2. Both the appeals are arising out of a common order in appeal and common adjudication order. The brief facts of the case are that the appellants are registered with the Central Excise for manufacture of electronic items such as antenna, booster, stabilizer etc. They have two units ie., unit-I and unit-II both are located in two different premises at Coimbatore. Unit-I imported five machines during the year 1997-1999, two in 1997 and three in 1999. They duly filed intimation under 57(1) before purchase and receipt of the machines on 05.08.97 and 24.08.99 respectively and intimat....

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....ts that even though they have shifted the said capital goods to unit-II, the unit-I not availed any modvat credit. Only in July,99 when they received the capital goods from unit-II, they availed the credit on 02.08.99 and 30.08.99 and not utilized the credit as they have transferred the capital goods to unit-II in July'99 by reversing the entire credit. He submits copy of invoice No.2502013312, which was acknowledged by the jurisdictional Asst. Commissioner. He further submits that they also filed monthly returns for the month of July and August, wherein the details of credit and debit of capital goods was duly stated in the returns. He further submits that both unit-I and unit-II belongs to the appellant's company and they have not....

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....rofit and loss accounts etc. The adjudicating authority and the lower appellate authority held that unit-I availed credit without receipt of capital goods in their factory. All the intimations find under Rule 57(T) were only created on paper. On perusal of records I find that the appellants duly intimated the Department prior to the importation of capital goods, which is mandatory for availing capital goods credit. They have also intimated that the said capital goods were shifted to unit-II which is on record. The allegation made in the adjudication order and in the impugned order that the appellants have not received the capital goods is not well founded with any supported evidence. There is no verification report either from the Range Sup....

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....th availment of debit of RG23 (c) part 2 has been reflected in the returns. Rule 57Q (8) clearly stipulates removal of capital goods before being installed in the factory on payment of appropriate duty. In the present case, appellants have removed the capital goods from unit-I to unit-II without installing the same and reversed the entire credit. Therefore, reversal of credit is in conformity with Rule 57Q(8) of CER,1944. In the case of Pooja Forge Ltd (supra), on identical issue the DB of the Tribunal has allowed the credit on capital goods where the capital goods were removed from unit-I to unit-II of the appellants own units. Para 4 of the said order is reproduced as under: "4. A perusal of the records makes it clear that capital goods ....