2019 (3) TMI 939

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.... Shri R.K. Mishra, DR - for the respondent ORDER Per V. Padmanabhan : This appeal is directed against the order-in-Original No. 29/17-18 dated 22.12.2017. The appellant's unit is situated at Bhiwadi, Alwar, Rajasthan and is engaged in the manufacture of steel profile sheets. For use in the manufacture of the goods, the appellant procured raw material, viz. coated steel coils from sister ....

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....allowed as Cenvat credit at the Bhiwadi unit in view of the Circular No. 940/1/2011-CX. dated 14.1.2011 issued by the CBEC. In the said circular, it has been clarified that if an assessee pays excess duty on exempted goods the same cannot be allowed as Cenvat credit to the downstream units, as the amount paid by the assessee cannot be termed as 'duty of excise' under Rule 3 of the Cenvat Credit Ru....

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....ant submitted that the Cenvat credit has been ordered for reversal incorrectly. He submitted that there is no dispute that the inputs procured by the appellant unit was cleared after payment of Central Excise duty by Bhiwadi unit. He referred to Rule 3 of the Cenvat Credit Rules 2002 and submitted that a manufacturer of final products shall be allowed to take the credit of various duties of excise....

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....pplier should have paid lesser duty. He also relied on several case laws including the decision of the Tribunal in the case of Cipla Ltd. Vs. CCE - 2011 (273) ELT 391 (Tri.-Mumbai) . 5. The ld. DR justified the impugned order. He submitted that the excess duty paid by the supplier unit was with a view to transferring excess Cenvat credit in the hands of the supplier unit. He also placed relianc....