2017 (5) TMI 37

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.... Unit and are manufacturing motor vehicle parts such as brake systems, brake assemblies and components. The goods manufactured in Jalgaon and Pune unit are stock transferred to the appellants at Gurgaon unit. Thereafter, the appellant assembles the same and clear to Maruti Udyog Limited (MUL for short) on payment of duty. It was proposed that appellant is not entitled to avail Cenvat credit on supplementary invoices issued by Jalgaon unit and Pune unit of the appellant, on the ground that supplementary invoices do not satisfy the condition under Rule 7(1) (b) / Rule 9(1)(b) of Cenvat Credit Rules, 2002/2004 as the Jalgaon Unit and Pune Unit of the appellant have undervalued the goods cleared to Gurgaon Unit. On being pointed out by the depa....

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.... valuation of goods such as, rate of overheads of year 2001-02 taken for costing of year in 2002-03, royalty expenses not included and overhead percentage calculation incorrect. On this ground, the duty paid by Jalgaon unit added in the assessable value of goods stock transferred to Pune and Gurgaon. (vii) On 24.10.2005, show cause notice was issue to Jalgaon unit proposing demand on account of undervaluation of goods. On 27.02.2005, Jalgaon unit moved application to Settlement Commission. (viii) The show cause notice issued to Pune Unit on 10.05.2005 for appropriating the amount paid on account of amortized value of machines received from MUL was adjudicated. (ix) Further, with regard to Jalgaon Unit, the Settlement Commission pass....

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....redit under the Cenvat Credit Rules. As the Larger Bench of this Tribunal has held that, if Jalgaon unit has gone into Settlement Commission, no penalty and interest has been levied, in that circumstances, allegation of suppression of facts by Jalgaon unit is not sustainable and Cenvat credit cannot be denied to the appellant. As regards the Cenvat credit availed on supplementary invoices issued by Pune Unit, it is the contention of the ld. Counsel that this Tribunal vide Final Order No. A/86145-86147/17/EB dated 28.02.2017, has held that assessee is not required to pay duty and therefore, the demands are not sustainable. 4. Ld. AR for the Revenue reiterates the findings in the impugned order. 5. On careful consideration of the submissio....