Order date – 22 December 2022

Facts –

• The Appellant, M/s. Jyoti CNC Automation Pvt Ltd is engaged in manufacturing of excisable goods. During the period 2006-07 to 2010-11, the appellant manufactured five machines namely VMC & SX04 at its factory for captive use. Due to space constraint the appellant transferred under invoice; endorsing transfer under Notification No. 67/95-CE, the said machines to it’s additional premise owned and controlled by the appellant situated about 500 mtrs away from the appellant’s factory.
• A notice to show cause dated 5.08.2011 was issued seeking recovery under section 11A of the Act in respect of aforesaid five machines transferred by the appellant to its additional premise on the ground that the said additional premise is not registered under the Act and hence benefit of duty exemption under notification no. 67/95-CE is not admissible to the appellant.

Issue –

• Whether the demand of duty under Section 11A and in admissible of benefit under notification no. 67/95-CE is in order?

Order –

• The Tribunal held that the additional premise is an extension of factory of the appellant and hence benefit of notification no. 67/95-CE cannot be denied to the appellant. Further, it can be seen that even if appellant would have paid duty the same would have been available as cenvat credit; the situation is therefore revenue neutral.
• It was held that demand of duty on transfer of such capital goods on the ground that the other premise is to be treated as separate premise requiring separate registration under the Act is not tenable.
• Hence the appeal is allowed.