2015 (10) TMI 335

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....d the Fatty Acids, Soap Noodles from their sister unit at Mumbai for use in the manufacture of their final product. It was found that their sister unit failed to pay the duty on the cost of escalation. As per Order dt.25.11.2005, the sister unit paid the differential duty of Rs. 10,36,468.00 and raised the supplementary invoice to the appellant. The appellant availed CENVAT Credit of Rs. 10,36,468.00 on the basis of the supplementary invoices dt.16.01.2006 and 19.01.2006 issued by the sister unit. A Show Cause Notice dt.16.01.2007 was issued, proposing to disallow the CENVAT Credit availed on the basis of supplementary invoices in contravention of the provisions of Rule 9(b) of CENVAT Credit Rules, 2004 alongwith interest and to impose pena....

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....,468.00 on the basis of supplementary invoices issued by their sister unit at Mumbai. Commissioner of Central Excise, Mumbai has passed an order dt.25.11.2005 to their sister unit at Mumbai demanding differential duty of Rs. 10,36,468.00 as the Mumbai unit failed to correctly determine the assessable value in respect of the goods declared to their sister unit (i.e. the Appellant herein). It was observed that since mis-declaration of the amount was admitted by the Mumbai unit, the extended period of limitation would be invoked. But, Mumbai unit paid duty and issued supplementary invoice to the sister unit. 5. The main contention of the learned Advocate is that it is a case of transfer of the goods from one unit to another and therefore, t....

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....(1) The Cenvat credit shall be taken by the manufacturer on the basis of any of the following documents namely : - (c) xxxxx (d) A supplementary invoice, issued by a manufacturer or importer of inputs or capital goods in terms of the provision of Central Excise Rules, 2002 from his factory or from his depot or from the premises of the consignment agent of the said manufacturer or importer or from any other premises from where the goods are sold by or on behalf of the said manufacturer or importer, in case additional amount of excise duties or additional duty of customs leviable under Section 3 of the Customs Tariff Act, has been paid, except where the additional amount of duty become recoverable from the manufacturer or importer of in....