2005 (6) TMI 135

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....Sekhon, Member (T)]. - Heard both sides. 1.2 M/s. Telco at Jamshedpur were an assessee under the Central Excise Act, engaged in the manufacture of Motor Vehicle & in April 1998, Excavator manufacture of business was hived off to another, holding unit manufacturing in the same premises. On 30-3-2000, the Axle & Transmission assembly unit was similarly hived as subsidiaries. However manufacturing....

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.... the use was not by M/s. Telco. The clearances however from these hived out units to M/s. Telco & of Excavators to outsiders was on payment of duty, at approximate rate & value which was not questioned. 2.1 Appellants rely on Jamna Auto, 2001 (130) E.L.T. 181; Metzeller Automotive Profiles India Pvt. Ltd., 2004 (167) E.L.T. 208; Whirlpool of India Ltd. [2003 (58) RLT 241 (T)] to claim that no d....

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....n shown. Following the same the proceedings in this case on capital goods cannot be upheld. 2.5 As regards proceedings on inputs, it is not contested that Excavators were finally removed on payment of duty.  Reversal of credit on the inputs, work in progress, semi-finished goods, following Jamna Auto & the other decision therefore induces us to hold that proceedings in respect of inputs in....

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....Telco for use in Motor Vehicle, Axle Assembly only after payment of duty. We find that would be a safe guard to Revenue; even though it was not strictly called for if Rule 57F(3) or (4) procedures were followed for the movement/accounting of the inputs. In any case there is no case for duty demands on M/s. Telco, as made out. 2.7 Since there is no determination of duty/credit recovery, the pena....