By TIOLNews Service

MUMBAI, OCT 05, 2017: THIS is an appeal filed in the year 2015 against the order passed by the Commissioner(A).

When the matter was heard recently, none was present on behalf of the appellant assessee.

The DR submitted that appellant is nothing but a bubble , which was a creation of M/s Shreyas International Ltd. (SIL) funding its entire infrastructure; that when investigation was made, the investigating team did not find any infrastructure for manufacture, but subsequently with the funding of SIL, the appellant manufactured the capital goods and supplied the same to SIL. And, therefore, Revenue had alleged that SIL and appellant being one and same, there cannot be grant of capital goods credit to SIL.

The Bench observed –

"3. The story of Revenue as stated above could not be established without leading any evidence. Mere funding is not decisive to say that unit was not in existence when Revenue granted Central Excise registration and manufacture was established. Therefore, it cannot be said that appellant was not an independent unit."

The appeal was allowed.

(See 2017-TIOL-3587-CESTAT-MUM)