2016 (3) TMI 399

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....of Rs. 6,389/- was confirmed under Section 11A of the Central Excise Act, 1944 along with interest and equal amount of penalty was also imposed. 2. When the case was called today, there was no representation on behalf of the appellant, but a letter has been received stating that the matter may be decided on merits and accordingly, I take up the appeal on merits. 3. The facts of the case are as under:-  (i) The appellant received from its sister unit a crane under invoice dated 06.04.2005 which showed its depreciated value, but the amount of CENVAT credit taken was Rs. 2,92,516/-, which was the duty paid by the sister unit when acquiring the crane. The contention of the Revenue is that the CENVAT credit should be restrict....

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....vely for job work and no duty was paid/payable on goods produced on job work basis and therefore credit on CNC machine was not allowed. 6. I have considered the contentions of both sides. I find that as per Rule 3(5) of the CENVAT Credit Rules, 2004 are stipulated as under:- "When inputs or capital goods on which Cenvat Credit has been taken are removed as such from the factory, or premises of the provider of output service, the manufacturer of the Final Products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of invoice referred to in Rule 9." Thus, as per the aforesaid rules, the suppl....