2016 (3) TMI 434

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....acture of dutiable final products. The demands for Cenvat Credit was confirmed by the Commissioner relying on the CBE&C Circular No. 645/36/2002-CX dated 16/07/2002. The Commissioner also relied on the decision of this Tribunal in the case of RPG Cables Ltd., vs. CCE, Mumbai - 2003 (157) ELT 273 (Tri-Del.). 2. The learned Counsel for the appellant relied on the decision of RPG Cables Ltd. (supra) to assert that no duty is demandable from them as the said obsolete goods have not been cleared form the factory premises. He further argued that so long as they do not clear the said material from the factory premises no reversal of credit can be demanded in respect of the said goods. He also relied on the decision of the Hon'ble High Court o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the appellants. However, taking into facts and circumstances of the case, the penalty of Rs. 50,000/- (Rupees fifty thousand only) under Rule 173Q and under Rule 57-I(4) of the Central Excise Rules meets the end of justice. Therefore penalty is reduced to Rs. 50,000/- (Rupees fifty thousand only), otherwise, the impugned order is upheld. It is seen that the said decision is given in a situation where the goods which were written off were not physically available in the factory. In fact the said decision distinguishes the said case on facts from the case of Bharat Heavy Electricals Ltd. vs. CCE, Bangalore - 2002 (50) RLT 208 (CEGAT-Bang) on the grounds that in the said case no reversal was required because the written off goods were physic....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....qual to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in Rule 9: Provided that such payment shall not be required to be made where any inputs or capital goods are removed outside the premises of the provider of output service for providing the output service: Amended vide Notification No. 10/2008-Central Excise (N.T.), dated 1-3-2008) Provided further that such payment shall not be required to be made when any capital goods are removed outside the premises of the provider of output service for providing the output service and the capital goods are brought back to the premises within 180 days, or such extended period not exceeding 180 days as may be p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....other provisions of these rules. [Inserted vide Notification No. 26/2007-Central Excise (N.T.), dated 11-5-2007] (5C) - Where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules, 2002, the CENVAT credit taken on the inputs used in the manufacture or production of said goods shall be reversed. 14. As per the above provision, it is clearly stated that when inputs or capital goods on which the Cenvat credit has been taken are removed as such from the factory or the 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 respe....