TaxTMI 
TaxTMI 
2020 (2) TMI 753
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....re 2 Challans as per the provisions of Rule 4(5)(a) of the Cenvat Credit Rules, 2004. After processing these inputs, they cleared the same against the said Annexure-2 challans to Unit No.II, wherefrom ultimately the finished goods were cleared on payment of Central Excise duty. The duty was demanded from Unit No.1 alleging that the Unit No.I and Unit No.II being under the same management, Unit No.I cannot be treated as a job-worker of Unit No.II. The adjudicating authority confirmed the demand and imposed equivalent penalty against the appellant company and also imposed personal penalty on the Managing Director of the appellant company. 2. Learned Advocate for the appellants has submitted that it is the case of the Revenue that instead of....
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.... inputs were processed, the same were removed from Unit No.I to Unit No.II. The movement of inputs of the processed goods were carried out under Annexure-II Challans by following the procedure laid down under Rule 4(5)(a) of the Cenvat Credit Rules, 2002, which reads as under:- RULE 4. Conditions for allowing CENVAT credit. (5)(a) The CENVAT credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning [or for the manufacture of intermediate goods necessary for the manufacture of final products] or any other purpose, and it is established from the records, challans or memos or any other document produced by the ma....
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....dit Rules, 2004 cannot not made applicable to the own unit of a manufacturer, as the unit belonging to the same manufacturer cannot be treated as a job worker. Relevant Paras of the said judgement are as follows:- "7. We have considered the submissions made from both the sides and perused the records. We find that the CENVAT Credit Rules permit "manufacturer" to take credit of duty paid in injputs/capital goods. The four units are different units of the same company and, therefore, they are same manufacturer as a legal entity. However, for the purpose of excise law each of the unit is required to register separately and discharge their duty liability when the goods are removed from the respective units. In fact capitive consumption of go....