Cenvat reversal from recipient factories on ground of excess duty payment by supplier

Cenvat Credit : Where supplier factories and recipient factories, both, belonged to assessee only, demand of Cenvat reversal from recipient factories on ground of excess duty payment by supplier factories, was dropped on undertaking from supplier factories that they would not claim refund of such excess duty
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[2014] 49 taxmann.com 416 (Bombay)
HIGH COURT OF BOMBAY
Commissioner of Central Excise
v.
Cipla Ltd.*
S.C. DHARMADHIKARI AND B.P. COLABAWALLA, JJ.
CENTRAL EXCISE APPEAL NOS. 101 TO 103 OF 2012
CENTRAL EXCISE APPEAL (LODGING) NOS. 68 AND 69 OF 2012
JULY  3, 2014
Rule 3 of the Cenvat Credit Rules, 2004, read with sections 3 and 11B of the Central Excise Act, 1944 - CENVAT Credit - General - Assessee made clearances from its supplier factories at Kurkumbh/Bangalore to recipient factories at Pune/Mumbai/ Raigad/Goa, etc. - Department claimed that supplier factories had made clearances to recipient factories at higher amount of duty, thereby, passing more credit - Tribunal held that since supplier factories had not claimed refund/reversal of credit, no demand could be sustained - HELD : Recipient factories had taken credit of duty paid by supplier factories - Supplier factories had given undertaking that they shall not file refund of duty paid by them - Corporate identity of supplier factories and recipient factories was same - In view of : (a) peculiar facts of case, (b) undertaking given by supplier factories and protection of interests of revenue thereby; and (c) common corporate identity of supplier and recipient factories, appeal was dismissed keeping larger question of law open [Paras 4 to 7] [In favour of assessee]