2023 (10) TMI 675

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....receive moulds from the respective manufacturers and have availed CENVAT credit on the same. On conduct of an audit, the Department objected to the availment of CENVAT credit on the grounds that the moulds and dyes were not purchased by the appellants but were simply supplied by the OEMs along with the credit thereof. A show-cause notice dated 12.08.2010 was issued demanding recovery of CENVAT credit of Rs.1,03,49,417/-; the same was confirmed vide OIO dated 30.12.2011 vide which equal penalty was also imposed. Hence, this appeal. 2. Shri Naveen Mullick, learned Counsel for the appellants, submits that the Department does not dispute the payment of duty on such moulds and dyes supplied by the OEMs; CENVAT credit on the same is admissible....

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....d is time barred. 4. Shri Nikhil Kumar Singh, learned Authorized Representative for the Department reiterates the findings of the impugned order and submits that ample opportunities were afforded to the appellants; audit was conducted on 07/08-12-2009 and show-cause notice was issued in August 2010 and adjudication order was passed in the year 2011. Learned Authorized Representative submits that the Commissioner has correctly held that the appellants have not purchased the moulds and hence, the moulds were not their property and as such, credit cannot be availed; in terms of Rule 9(5) of CENVAT Credit Rules, the onus to satisfy all the conditions is with the appellants. He submits that earlier Rule 57R (3) of the Central Excise Rules had....

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....ip. It is on record that the appellants have reversed the credit availed, whenever such moulds and dyes have been returned back to the OEMs, in terms of Rule 5 of CENVAT Credit Rules which states as under: (5) When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9: 6. The crux of the argument of the Department is that the appellants have not purchased the capital goods and....