TaxTMI 
TaxTMI 
2016 (5) TMI 1197
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....ner passed following order: 1) I disallow the Cenvat Credit of duty on Inputs amounting to Rs. 1,45,10,363/-[BED Rs. 1,41,95,115/- + Education Cess Rs. 2,89,007/- + Secondary & Higher Secondary Education Cess Rs. 26,241/- ] ( in words: Rs. One Crore Forty Five Lakhs Ten Thousand Three Hundred and Sixty Three only) taken on the Central Excise duty, Education Cess and Secondary & Higher Secondary Education Cess and order the recovery of the same from the Noticee in terms of Rule 14 of Cenvat Credit Rules, 2004 read with first proviso to Section 11A of Central Excise Act, 1944 along with interest. 2) I disallow the Cenvat credit of Service Tax paid on Inward carriage amounting Rs. 49,55,479/- (inclusive of Education Cess and ....
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....esaid goods, while procuring the same from their sister concern, appellant paid service tax on GTA on reverse charge basis and availed Cenvat credit of the said service tax. The adjudicating authority, while adjudicating the show cause notice denied the Cenvat credit on the Oil Slump Body, Cylinder Head & Rover Cylinder on the ground that no manufacturing activity has been undertaken on the said goods therefore for non manufacturing activity Cenvat Credit is not permissible. Consequently Cenvat credit in respect of service tax paid on inward GTA service in relation to purchase of goods has also been denied on the ground that since goods namely Oil Slump Body, Cylinder Head & Rover Cylinder are not inputs, the transportation of the goo....
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....facture. In support of this submission, he placed reliance on the following judgments: (a) Western Refrigeration Pvt Ltd Vs. CCE[2009(245) ELT 485(T)] (b) CCE Vs. Indo Asian Fuse Gears[1992(68) ELT 207(T)] (c) Rico Auto Industries Vs. CCE[2007(210) ELT 583 (T)] (d) S.M. Telesys Ltd Vs. CCE[2006(201) ELT 275(T)] He alternatively submits that since transaction is between the group companies, had the appellant and NSSL followed alternate procedure under Rule 4(5)(a) of Cenvat Credit Rules, 2004, no demand would have been arisen. In this regard, he placed reliance on the following judgments: (a) International Auto Ltd Vs. CCE[2005(183) ELT 239(SC)] (b) Lawkim Limited Vs. CCE, Pune- II[200....
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.... GTA services to the tune of Rs. 49,55,479/-, he submits that as per the above submission since the Cenvat credit is admissible treating the goods as input inward transportation of these goods are admissible for Cenvat credit. He further submits that the quantification of Cenvat credit of GTA service was wrongly done by the Adjudicating authority, for this reason that the department has taken entire amount of freight for the period 2005-06 to 2008-09 whereas actual transportation of machine casting from the appellant to NSSL and NSSL to the appellant is involving service tax of Rs. 8022/- only therefore there is apparent mistake in the show cause notice as well as adjudication order. On limitation, he submits that demand is for the period f....
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....moved does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be. Explanation. - The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by the manufacturer who removes the goods. (3) If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reaso....