2018 (2) TMI 7

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....wrappers used in the packing of their final products and distributed the materials to their various Units. In respect of Ex.Appeal No.76471/2017, the Show-cause notice dated 05.10.2007, was issued to the Manikchak Unit for contravention of the provisions of Rule 9 of the Cenvat Credit Rules, 2004. The Adjudicating Authority confirmed the demand of Rs. 1,39,804/- along with interest and imposed equal penalty under Section 11AC of the Central Excise Act, 1944. He dropped the demand of Rs. 4,31,016/-. On appeal, the Commissioner (Appeals) upheld the adjudication order. In respect of Ex.Appeal No.76472/2017, the Show-cause notice dated 19.06.2008, was issued to the Sultanganj Unit, Kaliachak for contravention of the provisions of Rule 9 of the ....

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....) Union of India Vs. Bharat Aluminium Co. Ltd. : 2011 (263) ELT 48 (Chhattisgarh) ; (ii) Excide Industries Ltd. Vs. Commr. of Central Excise, Haldia : 2008 (226) ELT 249 (Tri.-Kolkata). 4. The ld.A.R. appearing on behalf of the Revenue, reiterates the discussions and findings of the lower authorities. 5. Heard both sides and perused the records. 6. I find that the entire case relates to the Invoices issued by Aurangabad Unit to their sister Units namely Sultanganj and Manikchak Units. 7. The Commissioner (Appeals) observed that by applying principle of pre-ponderance of probability and the principle of law as in the relevant Central Excise Rules and Cenvat Credit Rules cannot be allowed on the Invoices that did not cont....

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....ials under the cover of Central Excise Invoice issued by their Sister Unit. In this context Rule 3(5) of the Rules 2004 may be referred. It has been mentioned that when inputs or capital goods on which Cenvat Credit has been taken, are removed as such from the factory, the manufacturer of the final products shall pay an amount equal to the credit availed in respect of such inputs and such removal shall be made under the cover of Invoice issued under Rule 9 of the Rules. As such it is a case of Inter Unit transaction of the input materials. In such situation, the Cenvat Credit cannot be denied for non-observance of procedural condition of technical nature. The Hon'ble Chattishgarh High Court in the case of Union of India Vs. Bharat Aluminium....

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....pplier, which issued those invoices, did not enter the particulars in their statutory records. The appeal has been allowed in view of the amendment made in Rule 57G and the Board s Circular, which was issued in light of the amended rules. 14. On the basis of aforesaid discussions, we are of the opinion that there is no illegality, infirmity or jurisdictional error committed by the Tribunal while passing the impugned order. We answer the substantial questions of law in favour of the assessee and against the Revenue, and dismiss the appeal accordingly." 11. The Tribunal in the case of Exide Industries Limited Vs. Commissioner of Central Excise, Haldia 2008 (226) ELT 249 (Tri-Kol) allowed the appeal of the assessee in the case inpu....