RAMAKRISHNA ELECTRICALS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE applicant is seeking waiver of pre -deposit of the input credit availed on returned transformers by the applicants. The brief facts of the case are that the applicants are manufacturers of transformer and clearing the same on payment of duty. Sometimes, the transformers which were supplied to the customer were returned back for repairs. In that situation, the applicant is providing the standby transformer for the period of repair of the transformer sold to the customer. The transformer which was sent for a short period were cleared on payment of duty and after the repair, the transformer was cleared the standby transformer comes back to the factory and on which the applicants are taking credit of the duty paid on the same. Revenue is of the view that the applicant is not entitled to take credit on the said standby transformer returned back as same is not input and the credit cannot been taken on the strength of the own invoice which is not a proper document to take Cenvat credit.

(2.) THE ld. counsel for the applicant submits that as per Rule 16 of Cenvat Credit Rules, 2002, the applicant is entitled to take credit of finished goods and there is no provision in Rule 16 on which document credit can be taken. To support this contention, he relied on the decision in Supreme Industries Ltd. - : 2005 (189) E.L.T. 453 which was followed by the Tribunal in Bunty Foods (India) P. Ltd. -, 2009 (240) E.L.T. 306. Considering the submissions made by the applicant and relying on the above citied judgment, the applicant has made out a case for 100% waiver of pre -deposit. Accordingly, I waive the pre -deposit of entire amount of duty, interest and penalty and stay recovery thereof during the pendency of the appeal.