2018 (6) TMI 178

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....tant Commissioner (AR), for respondent ORDER Brief facts of the case are that the appellant's unit No.1 has availed cenvat credit on various capital goods under the cover of 16 invoices. These capital goods were sent to unit No.2 under the cover of challan. The case of the department is that the appellant has not followed the procedure laid down under Rule 4(5) and also the capital goods so ....

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....ly lapse is that the capital goods sent to unit No.2 were returned back within 180 days. In some of the cases, the capital goods were not returned within 180 days. Subsequently all the capital goods, even though 180 days expired, were received after 180 days. Rule 4(5)(a) itself provides that the capital goods for carrying out job work should be received back within 180 days. If it is not returned....

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.... I have carefully considered the submissions made by both the sides and perused the records. I find that there is no dispute in the fact that the capital goods on which credit was availed were sent to their own unit No.2 for carrying out the production activity. Therefore, such removal is clearly covered under Rule 4(5)(a) as the appellant's unit No.1 has admittedly issued the challan. In case of ....

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....ently received back after the visit of the officers. In such case, the return of the capital goods needs verification on the basis of the records to be produced by the appellant to the adjudicating authority. Whenever there is a delay in receipt of the capital goods beyond 180 days, since the appellant was required to reverse the credit immediately after completion of 180 days, they are liable to ....