2017 (6) TMI 154

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....manufacturers of P & P Medicaments falling under Chapter 30 of Central Excise Tariff Act, 1985 and are availing benefit of CENVAT credit under the provisions of CENVAT Credit Rules, 2004. On verification of the records by the internal audit party, it was noticed that the appellants have procured inputs from M/s. Mahima Life Sciences Pvt. Ltd., 100% Export Oriented Unit (EOU) and have availed CENVAT credit in excess of the amount actually eligible. On these allegations, a show-cause notice dated 25.1.2008 was issued to the appellant proposing to demand and recover the irregular credit along with interest and also proposed penalty under Rule 15 of the CENVAT Credit Rules (CCR), 2004 read with Section 11AC. After following due process of law, ....

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....supplier M/s. Mahima Life Sciences Pvt. Ltd., it would become clear that the amount involved on the special processing charges of Rs. 4,20,000/- (Invoice No.141 dated 18.7.2007) and Rs. 4,80,000/- (Invoice No.197 dated 23.8.2007) had been included for payment of entire differential duty including basic customs duty and concessional customs duty, etc., and the same would become factually established even from the details furnished in the calculation chart prepared and enclosed at page 56 of the appeal paper-book and hence, the question of adopting two different assessable value, as assumed while passing the impugned Order-in-Original dated 23.3.2009 would be prima facie established as unsustainable in law. He also submitted that when the fac....

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.... 409. He further submitted that even otherwise taking of the said differential credit of Rs. 1,44,130/- would be inconformity with the principles laid down inter alia in the following cases. • CCE vs. H. K. Moulders: 2011 (268) ELT 43 (Guj.) • Crompton Greaves Ltd. vs. CCE: 2013 (296) ELT 470 (Tri.-Mum.) • Molex (India) Pvt. Ltd. vs. CCE: 2016 (341) ELT 463 (Tri.-Bang.) He also submitted that the said credit remained a mere book entry during the period from August 2007 to December 2007, when the eligibility arose as per the letter issued by the M/s. Mahima Life Sciences Pvt. Ltd. duly certified by the jurisdictional Superintendent in-charge of the 100% EOU on 18.12.2007 have been obtained and furnis....