2023 (10) TMI 112

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....ant alleging irregular availment of Cenvat Credit of Rs.80,22,363/-, owing to clandestine removal of 556.780 MTs of old and used C.I. Moulds (capital goods) without payment/reversal of Cenvat credit, in the guise of captive use during the period from 2006-07 to 2008-09. The Notice was adjudicated by the Commissioner vide the impugned Order-inoriginal dated 20.07.2011, wherein he confirmed the demand of irregular Cenvat Credit of Rs.80,22,363/- and imposed penalty equivalent to the irregular credit under Rule 15 of the CCR 2004, read with Section 11AC of the Central Excise Act, 1944. Aggrieved against the impugned order, the Appellant has filed the present appeal. 2. Briefly stated facts of the case are that during the course of audit of ....

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....MT of CI Moulds clandestinely without payment of duty. There is no iota of evidence establishing the removal of such goods from the factory premises without payment of duty. They categorically submitted that whatever moulds were received, consumed and used, were duly accounted for/reflected in their Mould Register. Even though the said Register had been referred to in the impugned order, the Ld. Adjudicating Authority has not considered the same and confirmed the demand. 4. The Appellant stated that the finished goods cannot be manufactured without the use of the Ingot Moulds. In absence of physical presence of such moulds in the factory, the department alleged that those were cleared by them clandestinely. They contended that these moul....

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....cordingly consumed in their factory by melting the same along with other raw materials for the manufacture of their finished goods. We observe that the receipt and consumption of C.I. Moulds had been duly accounted by them in their factory in the C.I. Moulds Register. The C.I. Moulds Register is periodically verified by the Range Superintendent and no objection was ever raised by the Superintendent. 8. We find force in the submission of the Appellant that after receipt of the Moulds, the same were utilized in the manufacture of finished goods namely, MS ingots and in the process of manufacture, the C.I. moulds were exhausted, and ultimately, the same were melted along with other raw materials for manufacture of the finished goods. We als....