2007 (7) TMI 136

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....005 dated 25-11-2005. 2.Heard both sides. 3.The relevant facts, in brief, are as follows : (a) The appellant imported a ship for breaking and the same was beached in their plot which was also registered as factory premises for the purpose of Central Excise. Bill of Entry was filed on 13-9-2004 and customs duty of Rs. 29,67,643/- + Education Cess Rs. 2,62,767/- + Additional Duty of Customs....

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.... oil inside engine room of the ship which came for breaking. He has also demanded central excise duty of Rs. 3,89,551/- debited through their Cenvat accounts by wrongly utilizing the Cenvat credit. He also imposed penalty of Rs. 25 lakhs on the appellant. 4.Learned authorized representative for the appellant submits that in their case, the shipyard as well as the factory were in the same premis....

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....not explained. Even if the delay was justified, it cannot lead to denial of Cenvat credit on the CVD paid on the vessel. The taking of credit before out of charge is given is at the most, a technical violation. This technical violation is caused due to the delay in grant of out of charge by the Department and it cannot take away the substantial right to Cenvat available to the appellant, especiall....