2018 (7) TMI 976

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.... of parts of transformer tank falling under CHH 85041010 of Central Excise Tariff Act 1985 and are availing cenvat credit on input and capital goods under the Cenvat Credit Rules 2004. During the course of audit, it was noticed that the assessee has availed cenvat credit of Rs. 3,87,848/- (Rupees Three Lakhs Eighty Seven Thousand Eight Hundred and Forty Eight only) on the invoices by classifying them as capital goods which were not installed in their premises. Revenue entertained the view that the appellant has availed cenvat credit on the capital goods without receiving the same at their manufacturing place and instead they had installed it in a different unit situated elsewhere and availed cenvat credit and during the audit, the said mach....

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....d machineries and accessories to the new premises and the jurisdictional authorities did not object to shifting of certain processes and related machineries to the nearby premises. He further submitted that the capital goods have been purchased by the appellant and has been used in their main premises and thereafter shifted to their other premises and the same was used for captive consumption. He also submitted that the details of the capital goods purchased and their movements between the main premises and additional premises through delivery challan were submitted in reply to the show-cause notice and the lower authorities have obtained a verification report from the Superintendent, Tumkur who has reported that the said machineries were a....

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....substantial demand is time-barred as the show-cause notice has been issued on 22.03.2013 whereas the invoices relating to capital goods pertain to 2007, 2011-2012. 4. On the other hand the learned AR reiterated the findings of the impugned order. 5. After considering the submissions of both the parties and perusal of the material on record, I find that the appellants have informed the concerned Assistant Commissioner of Central Excise vide their letter dated have 07.07.2010 vide which they have informed that due to space problem they have purchased new premises at 48 & 49, Industrial area, Tumkur for doing certain operations and have shifted the machineries. Further I find that at the said premises the machineries have been used only ....

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....oods has to be received back within 180 days of that being sent to job worker and this condition not complied with, then assessee shall reverse an amount equivalent to the Cenvat credit taken and can take the Cenvat credit when the capital goods are received back in the factory or the job worker's premises. I find that there is no dispute that the said capital goods are utilized by the job worker, it would lend support to the argument that there would be a revenue neutrality and the reversal of Cenvat credit would be revenue neutral as the appellant is entitled to take credit on such amount as soon as he receives the capital goods back from the job worker's premises. This being the case, I do not find any reason for reversal of the Cenv....