2017 (11) TMI 822

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....y and they noticed that appellant has availed ineligible Cenvat Credit on the finished goods which were returned by the purchasers. A Show Cause Notice was issued to appellants directing them to Show Cause as to why demand of the duty of Rs. 18,71,909/- should not demanded under Rule 14 of Cenvat Credit Rules, 2004 read with proviso to sub section into (1) of Section 11A of the Central Excise Act, 1944 along with interest of penalties should not imposed of them. Appellant defended the Show Cause Notice on merits as well as on limitations. The adjudicating authority did not agree with the contentions raised by the appellant and confirmed demand with interest and also imposed penalties. Aggrieved by such order an appeal was preferred to the f....

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.... Excise Rules 2004 needs to be reproduced. "Rule 16. Credit of duty on goods brought to the factory. - (1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being remade, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit rules, 2002 and utilise this credit according to the said rules. (2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT Credit taken under sub-rule (1) and in any o....

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....t of the finished goods as well as the dispatch of reconditioned goods with the difference between receipt and despatches accounted as scrap that arises during process. I am at a loss to note that both lower authorities, despite such a detailed records maintained, have come to conclusion that this document/register is not enough to come to conclusion that the appellant has not maintained the records of the receipts the finished goods and subsequent dispatch of the same as payment of appropriate duty. It is seen that there is no dispute as to fact that the appellant had cleared the finished goods for home consumption on payment of appropriate duty as also receipt of the finished goods from appellant's purchasers. 6. In facts and circu....