TaxTMI 
TaxTMI 
2020 (2) TMI 36
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....re engaged in manufacture of electric energy meters and were availing the Cenvat Credit upon the duty paid thereof. During the course of audit, Department observed that the respondent, assessee has availed the Cenvat Credit of Rs. 88,51,546/- During the period from April 2012 to August, 2014 on the strength of ineligible documents i.e. endorsed invoices/ Bill of Entries which amounts to contravention of rule 9 (1) of Cenvat Credit Rules, 2004. Resultantly, a show cause notice No.673-75 dated 12/16 February, 2015 proposing the recovery of the said amount of Cenvat Credit alleging the same to have been wrongly availed, alongwith the interest at appropriate rate and the proportionate penalty. The said proposal was confirmed vide Order-in-Origi....
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.... Bill of Entry does not cease to be an invoice or Bill of Entry after endorsement, but remain as such. Learned Counsel has mentioned that the endorsed invoices had already been held to be a valid document under Rule 9 /1 of Cenvat Credit Rules. Following decisions have been relied upon:- 1. CCE, Chandigarh vs. Stelko Strips Ltd., reported in 2010 (255) ELT 397 (P & H) 2. Uni Cast Pvt. Lotd. Vs. CCE, Meerut reported in 2016 (331) ELT 369 (All.) 3. Sona Koya Steering Systems Ltd. v. CCE reported in 2013 (296) ELT 481 (Tri.-Del.) 4. International Tobacco Co. Ltd. v. CCE, Ghaziabad reported in 2018 (8) TMI 1170, CESTAT-Allahabad. 5. Alleging the grounds taken in the show cause notice to be based on assumptions and presumptions and....
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.... on an invoice. - (1) No excisable goods shall be delivered from a factory or a warehouse except under an invoice signed by the owner of the factory, or his authorised agent. ..................................................." "RULE 57G. Procedure to be observed by the manufacturer. - (1) Every manufacturer intending to take credit of the duty paid in inputs under rule 57A, shall file a declaration with the Assistant Collector of Central Excise having jurisdiction over his factory, indicating the description of the final products manufactured in his factory and the inputs intended to be used in each of the said final products and such other information as the said Assistant Collector may require, and obtain a dated acknowledgment of t....
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....ds to the assessee (which transaction is not doubted in the show cause notice). Further the goods were transferred directly by the importer to the Unit of the assessee from the Port. Therefore, the goods never went to the manufacturing Unit of M/s. Essar Gujarat Limited. For such a situation the proviso to sub-rule (2) of Rule 57G states that the relevant document indicating payment of duty would be Bill of Entry." 7. Subsequently, there have been the decisions as already quoted by the ld. Counsel for the assessee. Hon'ble High Court, Allahabad in the case of Unicast Pvt. Ltd. Vs. CCE, Meerut reported in 2016 (331) E.L.T. 369 (Allahabad) has quoted the findings of Hon'ble High Court of Madras in the case of CCE, Salem vs. M/s. Chemplast Sa....
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....onsequences of taking credit wrongly. 10. The object of the Modvat scheme was to reduce cost of final product by taking credit for the duty paid on the inputs." 9. It has also been clarified by the Hon'ble Supreme Court in the case of Madras Cements Ltd. Vs. Commissioner of Central Excise reported in 2010 254 E.L.T. 3 (S.C.) that to avail the Modvat/ Cenvat Credit an assessee has to satisfy the assessing authorities that the capital goods on which the credit has been availed have been utilized during the process of manufacture of the finished products. As already observed, there is no denial of the Department for the same. Thus, in the given circumstances, we are of the opinion that when admittedly the inputs/ capital goods/ raw-materia....
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....above discussion, we do not find any infirmity in the order of Commissioner (Appeals), wherein he has quoted as follows:- "9. I find that it is not a case of the revenue that the inputs on which CENVAT credit has been availed were not received in the factory premises or were not used in the manufacture of the final product on which approp0-riate duty was paid. I also find that in case of CCE, Noida vs. Fles Industries Ltd. - 2004 (178) ELT 1029 (Tri.-Del.), Hon'ble Tribunal held that goods transferred from one factory to other factory of the same company by making endorsement on the invoices is a valid documents for taking CENVAT Credit under Rule 9 of the CC Rules, 2004, and in CCE vs. Coimbatore Murugan Mills - 2003 (160) ELT 825 (Tri.....