2023 (3) TMI 633

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....ed goods mainly to M/s. Ashok Leyland Ltd. (ALL). During the verification of their accounts by Revenue, it was found that they have received the input material from ALL free of cost. The free materials were used in connection with the manufacture of the final product 'Tiltable Tile Cab Assembly' which was cleared back to ALL on payment of duty without following the procedure laid down in notification no 214/86 CE dated 23/05/86 as amended therefore the appellant has deviated from the provisions of Rule 4 (5) (a) of Cenvat Credit Rules, 2004 (CCR). In the circumstances since free material was used in the manufacture of the goods, the price (on which duty was paid by the appellant in this case), was not the sole consideration for the sale, an....

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.... duty paid by the intermediate purchaser on its products. In the MODVAT scheme, the final product would have to include the cost of the inputs and in respect of which MODVAT credit could be taken at the time of clearance of the final product. Hence the appeal was allowed. He further submitted that Rule 4(5)(a) of the CENVAT Credit Rules was pari materia to Rule 57F(2) of the Central Excise Rules, 1944 as held in many judgments. He has relied on the following judgments in support of his stand:- a. Dymoslear Automotive India Pvt. Ltd. (supra) Vs. CCE, Chennai reported in 2019 (366) ELT 898 (Tri. Chennai) b. SRF Ltd. Vs. CCE, Chennai reported in 2007 (220) ELT 201 (Tri. Chennai) c. CCE, Pune Vs. Menon & Menon reported in 2015 (325) ELT 1....