2021 (9) TMI 771

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....m Components falling under Chapter heading Nos. 4201,3506, 7014, 5406 and 4016 of CETA 1985 respectively. (ii) The appellants imported V belts and procured "pulleys" locally and availed credit on the same. They have imported poly V belt which were intended to be used at another production facility-wet grinder assembly units. The testing facilities for belts were available only at their Arasur unit. The appellants had taken credit on the same and cleared the same under excise invoice on payment of duty to their job workers for assembly operations. Further the appellants had manufactured belt and removed the same on payment of duty. While removing the manufactured belts, they had also removed 'pulleys' which were bought out items on ....

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....g the submissions, the proposals made in the Show cause notice were confirmed. Hence this appeal. 2. Ld. Counsel submitted that The Commissioner (Appeals) in para 6 has observed that the appellant contended that the availment of cenvat credit on the above materials is correct since they tested the materials and transferred the same to their grinder unit which, in turn, supplied the same to the job worker, on payment of duty. However, the authority held that this version of the appellant is not supported by the provisions of Cenvat Credit Rules and is therefore in contravention of Rule 2 (k) and 9(5) of Cenvat Credit Rules 2004. This is not a case of availment of credit and clearance to another unit without payment of duty. The appellant ha....