Case Law Details
Sanjay Casting Vs C.C.E. (CESTAT Ahmedabad)
Successful appeal by Sanjay Castings against excise duty demand. CESTAT Ahmedabad rules in favor, rejecting allegations on old molds, coal credit denial.
As regard the denial of Cenvat credit and the ground that the same was lying outside the factory, as per the facts of the case firstly, the appellant had not taken the cenvat credit when the goods were lying stored outside, the credit was taken only after taking the coal into the factory therefore, there is no violation of any Cenvat Credit Rules. Secondly, the coal was lying outside the factory but it was lying within the premises which is owned by the appellant only. As discussed above, the appellant had applied for inclusion of the said premises in the factory premises even before storing the goods and subsequently, the permission was granted and the said premises deemed to have been part and parcel of the registered premises of the appellant. For this reason also the Cenvat credit on coal cannot be denied. Since the demand itself is not sustainable, penalty on the main appellant as well as co-appellant is also not sustainable.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
M/s Sanjay Castings and its partner Shri Dipak Rathod, have filed present appeals against Order-In-Original No. BVR-EXCUS-000-COM-17 TO 019 -15-16 dated 16.09.2015 passed by the Commissioner of Central Excise, Bhavnagar, wherein demand of excise duty Rs. 8,09,39,585/- and cenvat credit demand of Rs. 49,825/- was confirmed with interest and penalty and also a separate penalty of Rs.2,00,00,000/- was imposed on Shri Dipak Rathod.
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