TaxTMI 
TaxTMI 
2024 (3) TMI 66
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....ial records for the period 2014-15 to 2016-17, it was noticed by the department that the appellant has procured certain tools and moulds valued at Rs. 28,60,37,256/- on payment of duty and the appellant availed Cenvat credit of duty paid on such tools and moulds. These tools and moulds were further sold to M/s. Ford India Pvt. Limited by the appellant by issuing commercial invoices on which VAT was discharged however, no central excise duty was paid. The Cenvat credit availed at the time of procurement of such tools and moulds was not reversed by the appellant as these goods were not removed by them from the factory of manufacture. The department has also observed that the appellant in their books of accounts have reduced inventory of tools....
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....h tools and moulds on the strength of purchase invoices. The learned advocate has further submitted that after receiving the tools and moulds into their factory, the appellant had raised commercial invoice to them for sale of such tools and moulds to M/s. Ford India Pvt. Limited. The said commercial invoices were only to effect the sale of such tools to their customers namely M/s. Ford India Pvt. Limited. It was further explained by learned advocate that such tools and moulds were supposed to be provided to M/s. Ford India Pvt. Limited for manufacture of various automobile components. However, since it was requested by M/s. Ford India Pvt. Limited that appellant can procure the same from various vendors and use the same for manufacture of a....
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...., Panchkula -2016 (332) ELT 895 (Tri. - Del.) (c) Commissioner of Central Excise & Service Tax, Panchkula vs. Polyplastics Industries (I) Pvt. Ltd, -2017 (351) ELT 129 (P & H) (d) TC Healthcare Pvt. Limited vs. Commissioner of Central Excise, Ghaziabad - 2015 (329) ELT 529 (Tri. - Del.) (e) DCM Engineering Products vs. Commissioner of Central Excise, Jalandhar - 2010 (251) ELT 91 (Tri. - Del.) (f) L.G. Balakrishnan & Brothers Limited vs. Commissioner of Central Excise, Trichy - 2016 (340) ELT 708 (Tri. - Chennai) 4. We have also heard Shri Rajesh Nathan, learned Assistant Commissioner, (AR) who reiterates the findings as given in the impugned order-in-original. 5. Having heard both the sides, we find that the only question wh....
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....or each quarter in the second year@ 8% (ii) for capital goods, other than computers and computer peripherals @ 2.5% for each Quarter: Provided that if the amount so is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value." From a plain reading of Rule 3(5A)(a), it can be seen that Cenvat credit is to be reversed only if the capital goods on which Cenvat credit has been availed by any assessee, have physically been removed. We find from the entire proceedings that no evidence has been adduced by the department to prove that the tools and moulds which were purchased and used by the appellant have been physically removed from their factory o....
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....yable thereon, etc., as per the requirement of Rule 11(2) of Central Excise Rules, 2002. We also note that based on these invoices no credit can be availed by any buyer as these are not in terms of Rule 9 of Cenvat Credit Rules, 2004. In view of settled legal position regarding need for physical removal of capital goods or inputs, in order to attract the provisions of Rule 3(5) of Cenvat Credit Rules, 2004, we find that there is no justification to invoke such provision to demand and recover any amount from the appellant in this case. As such, we find no justification for the confirmation of demand towards capital goods. The same reasoning is applicable to the recovery of amount for the inputs amounting to Rs. 91,76,449/-. The demand toward....
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....see is entitled to avail Cenvat credit on the inputs or capital goods, upon fulfillment of the condition that those goods have suffered duty and received in the factory of manufacture of final product. In the present case, since the requirement of the Cenvat statute has been duly complied with by the appellant, denial of Cenvat credit on moulds is not proper and justified." The above decision of this Tribunal has also been endorsed by Hon'ble Punjab & Haryana High Court in the case Commissioner of Central Excise & Service Tax, Panchkula vs. Polyplastics Industries (I) Pvt. Ltd, reported under 2017 (351) ELT 129 (P & H) "5. The Adjudicating Authority relied upon the invoices to hold that the moulds had not been removed. The invoices merel....