TaxTMI 
TaxTMI 
2026 (5) TMI 262
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.... 2. Briefly stated the facts of the case are that the appellant are engaged in the manufacture of control valves failing under Chapter 84 of Central Excise Tariff Act, 1985. Alleging that the appellant had availed / utilised irregular cenvat credit during the period 2012-13 on stock transferred goods to their Nashik Unit, investigation was initiated and on completion of the investigation, show-cause notice was issued to them on 31.01.2018 demanding an amount of Rs.53,09,062/- being excess amount collected from their sister concern during the period 2012-13 to 2016-17 under Section 11D(2) of the Central Excise Act, 1944 (CEA, 1944) with interest and penalty. On adjudication, the demand was confirmed with interest and penalty. On appeal by....
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.... Ropes [2017(350) ELT 439 (Tri. Mumbai)] and referred to the following judgments:- i. Sharada Polymers (P) Ltd. Vs. CCE, Bangalore [2006(206) ELT 550 (Tri. Bang.)] ii. Lamicoat International Pvt. Ltd. Vs. CCE, Noida [2015(324) ELT 411 (Tri. Del.)] iii. Viraj Impo & Expo Ltd. Vs. CCE, Thane-II [2006(205) ELT 364 (Tri. Mumbai)] - Upheld by Bombay High Court in 2009(234) ELT A120(Bom.). iv. Uttam Galva Steels Ltd. Vs. CCE, Raigad [2016(336) ELT 81 (Tri. Mumbai)] v. Asian Colour Coated Ispat Ltd. Vs. CCE, Delhi-III [2015(317) ELT 538 (Tri. Del.) vi. CCE, Belapur Vs. PRP Wire Ropes [2017(350) ELT 439 (Tri. Mumbai)] vii. CCE, Thane-II Vs. Angadpal Industries Ltd. [2013(12) TMI 508 - C....
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....ged duty on such inputs by determining its value @ 110% of the cost of stock transferred goods. The Department proposed to recover the excess duty paid and collected from the sister concern under Section 11D(2) of CEA, 1944. 8. To appreciate the rival contention, the relevant provisions viz. Rule 3(5) of CCR, 2004 and Section 11D of CEA, 1944 are to be gone through, which are as follows:- Rule 3(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 a....
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....by him to the credit of the Central Government. (3) The Central Excise Officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (2), determine the amount due from such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined. (4) The amount paid to the credit of the Central Government under sub-section (1) or sub-section (3), as the case may be, shall be adjusted against the duty of excise payable by the person on finalisation of assessment or any other proceeding for determination of the duty of excise relating to the excisable goods referred to in sub-section (1). (5) Where....
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....In the present case, the appellant has advanced a two-fold argument. First, they have said that the goods were not sold to any buyer but transferred to their sister concerns on stock transfer basis; hence, provisions of Section 11D are not applicable; also, it is argued that the amount in excess of the credit calculated by discharging duty on the value applying CAS4 method of valuation and though collected from their sister concern but paid to the Government, hence, no amount has been outstanding to be paid to the Government. Therefore, the said Section 11D(2) is not applicable to the facts of the present case. 10. We find merit in the contention of the learned advocate for the appellant. This Tribunal in the case of CCE, Thane-II Vs. An....