2017 (12) TMI 702

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.... of their sister unit. The appellants were also received inputs and diverting the same in their sister units. An investigation was conducted on the factory premises of the appellant wherein it was found that the capital goods not found in their factory and the inputs which were received by them were also found in the sister unit of the appellant. Therefore, as it was found that capital goods and inputs were not found in their factory for manufacturing, the appellant is not entitled to avail cenvat credit on these capital goods and inputs. In these set of facts, a show cause notice was issued to the appellant to deny the cenvat credit. Consequently, to demand of duty along with interest and to impose penalties on both the appellants. The mat....

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....ods procured by the appellants were not used in the factory of the appellants and they sent the same to sister unit wherein they were installed and found at their sister unit. As per the Cenvat Credit Rules, 2004, Cenvat credit on the capital goods and inputs are available to the assessee if, the same has been used in their factory of manufacturing. Admittedly, these goods were not found in their factory of manufacturing and these goods have not been sent to the sister unit under any challans for job work, the inputs under job work challans and never intimated to the department with regard to the clearances of inputs and capital goods from their factory without reversing the cenvat credit. In that circumstances, the appellants are not entit....