2017 (3) TMI 784

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....n order. The details of the three appeals and the period involved and the credit denied and the reasons for denial of credit is mentioned herein below in the tabular form. Appeal No. Period Credit demand (Rs) Penalty (Rs) Credit involved Reasons for denial E/918/09 June 2005 to May 2007 11,08,732/- 11,43,383/- 11,04,372/- Appellant unit had availed Cenvat credit on inputs based on invoices which were addressed to the other units of the Appellant.         4360/- Credit is availed on the basis of xerox copies of input invoice E/919/2009 June 2005 to May 2007 26,18,844/- 26,25,125/- 2,59,731/- Appellant unit had availed Cenvat credit on capital goods fu....

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....ictional Central Excise Authorities. Appellant is working under CENVAT credit scheme and availing credit of eligible types of duties and taxes paid on inputs, input services and capital goods in terms of CENVAT Credit Rules 2004. The period involved in the different appeals, the amount involved and the reasons for denial of CENVAT credit in each appeal has been stated in the table. On an investigation by the preventive unit of the Central Excise Department relating to the appellants availing CENVAT credit, the department found that the appellant has availed irregular and inadmissible credit and on this allegation various show-cause notices were issued for different periods alleging contravention of various provisions of CENVAT Credit Rules ....

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....tice were confirmed whereas the facts of payment of credit during investigation did not mean that the appellant has waived his right to contest the case on merits. He further submitted that merely because the appellant has paid the credit during investigation does not absolve the duty of the quasi-judicial authorities to examine the merits of the case. He further submitted that in the present case, learned Commissioner (Appeals) in para 13 of the impugned order has observed that since the appellant has admitted the allegations of ineligible availment of credit and has not contested the departments allegation by producing evidences and therefore he did not dwell the case on merits. Learned counsel for the appellant further submitted that the....

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....is pitted against the procedural infraction, then procedural infraction cannot come in the way of substantial benefit. In support of this submission, he relied upon the decision of the Honble Supreme Court in the case of Eicher Motors Ltd Vs UOI [1999 (106)ELT 3(SC)] and in the case of Formica India Division Vs CCE [1995 (77)ELT 511 (SC)]. Learned counsel further submitted that Commissioner (Appeals) as well as adjudicating authority have gone by sheer technicalities ignoring the material facts namely that the appellant had received the inputs in question inside their factory, appellant is a multi-unit company, the inputs in question were duty-paid and the inputs were used in the appellants factory for manufacture of excisable goods which w....

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....e basis of xerox copy of the invoice is not deniable in law and is opposed to the following judicial decisions. 1) Controls & Drives Coimbatore (P) Ltd Vs CCE [2008(222)ELT 470(T) 2) Sehmbey Products Vs CCE [2007(215)ELT 156(T) 3) Vardhaman Acrylics Ltd Vs CCE & Cus [2006(204)ELT 321(T). Learned counsel further submitted that there is nothing wrong in taking CENVAT credit on capital goods 100% in the first year itself though as per rules only 50% of the same is to be taken in the first year and 50% credit in the subsequent year. But in this case, since he has availed 100% in the first year and has not utilized the same and for the subsequent year he is entitled to avail 50% therefore it will not result in to an....