TaxTMI 
TaxTMI 
2018 (3) TMI 266
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.... Shri R.K. Mishra, DR for the respondent ORDER Per : V. Padmanabhan 1. The following appeals (E/50082, 50092, 50081, 50074, 50075/2017) are against the Order-in-Original No. 18/2016-17 dated 27/09/2016 and (E/52617-52620/2016) are against the Order-in-Original 9/2016-2017 dated 10.06.2016 and. The dispute involved in all the appeals is being disposed of this through this common order. 2. The brief facts leading to the dispute are summarized below:- M/s Caparo Engineering India Ltd. is engaged in the manufacture of parts of motor vehicles falling under Chapter 87 of the Central Excise portion. The disputes involved the two units of M/s Caparo Engineering India Pvt. Ltd. identified as Unit-I and Unit-II. The first d....
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....ruary 2010. Unit-II availed Cenvat Credit of such duty paid. Some of the dies which were worn out during use were sent to Unit-I for carrying out repairs. At the time of such transfer, Unit-II paid Central Excise duty and Unit-I, in turn, availed Cenvat Credit of such duty paid under capital goods in two parts of 50 per cent each. After carrying out the rectification, capital goods were cleared back to Unit-II in March, 2011 on reversal of the Cenvat Credit availed. Revenue was of the view that Unit-I was not entitled to avail the Cenvat Credit of the duty paid by Unit-II since these dies and moulds were not in the nature of Capital goods for Unit-I. Further, the department was of the view that there was no record of the dies being received....
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....T-I i. The dies have been sent from Unit-II to Unit-I on payment of duty under Rule 3(5) of the Cenvat Credit Rules, 2004 and Unit-I availed such credit under the category of capital goods. Even if such credit is disallowed under the category of capital goods, Unit-II will be entitled to avail such credit under Rule 16 of the Central Excise Rules, 2002. ii. The credits availed by Unit-I stand reversed when the dies were returned to Unit-II after carrying out repair. Since the Cenvat Credit availed already stands paid back, there is no justification for demanding repayment of Cenvat Credit all over again. iii. Once duty is paid by Unit-I, the payability of such duty cannot be opened at the end of the recipient of t....
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....eard both sides and perused the appeal records. 8. Initially we deal with the first dispute of receipt of dies by Unit-II from M/s Tata Motors on payment of duty. Admittedly, M/s Tata Motors have imported the dies without payment of duty under EPCG license but at the time of transfer of such dies to Unit-II, they have made payment of CVD and Unit-II, in turn, availed Cenvat Credit of such amount paid. The case of the Revenue is that since there was no need for making such payment by M/s Tata Motors Ltd, CVD paid cannot be allowed as Cenvat Credit to Unit-II. Further, Revenue is of the view that the amount which is recovered by M/s Tata Motors has to be paid into the Government account under Section 11D and such amount stands demanded fro....
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....ayment of duty was also duly accepted. We find absolutely no substance in the attempt of the learned Commissioner to convert a part of the duty so paid into "deposit of duty". There is no legal basis for such presumption. The Rules entitled the receipt manufacturer to avail of the benefit of the duty paid by the supplier manufacturer. A quantum of duty already determined by the jurisdictional officers of the supplier unit cannot be contested or challenged by the officers in charge of the recipient unit [ 2000 (38) RLT 179]." 8. The counsel appearing for the Revenue could not assail any of the findings recorded by the Tribunal. 9. That being the position, we agree with view taken by the Tribunal and find no merit in these a....
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....authority. In any case the credit availed by Unit-II stands reversed when the dies were returned to Unit-II after carrying out repairs by reversal of the Cenvat Credit. Since the credit availed already stood reversed no demand can be raised against the Unit-I for repayment of the credit availed all over again. In this regard we note that the Tribunal in the case of M/s Amul Auto Components Ltd. V/s CCE 2018-TIOL- 72-CESTAT-Delhi has considered a similar issue. In the said case the Tribunal has observed as follows:- "We find that the present controversy can be decoded even without resolving the larger question as to whether the appellant is entitled to Cenvat Credit on inputs used for finished products which are exported. The appell....