COMMISSIONER CENTRAL EXCISE AND CUSTOMS Vs. MANAKSIA LIMITED

JUDGEMENT

(1.) The appellant-revenue has challenged order dated 24.6.2008 made by the Customs, Excise & Service Tax Appellate Tribunal (the Tribunal), proposing the following question:

(2.) The facts stated briefly are that the respondent herein placed an order with one M/s Ishan Technologies Pvt. Ltd. (hereinafter referred to as M/s Ishan) for a 10MW Slow Speed Alternator with AVRS and Voltage Control System. The respondent received the said system under invoice dated 12.4.2003 issued by M/s Ishan showing the value of the consignment as Rs. 5,50,00,000/- and the amount of duty paid as Rs. 88,00,000/-. Based upon the said invoice, the respondent availed of the benefit of CENVAT credit of the said amount.

(3.) Investigations by the concerned authorities revealed that the alternator had not been manufactured by M/s Ishan and accordingly, there was no clearance of the capital goods in question under the invoice issued by M/s Ishan, based on which the credit of Rs. 88 lakhs was taken. Accordingly, the goods were confiscated and redemption was allowed on payment of fine of Rs. 2 crores. The credit of Rs. 88 lakhs came to be disallowed and interest as well as penalty also came to be imposed on the respondent and others.