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2017 (8) TMI 1272 - AT - Central ExciseCENVAT credit - iron & steel items such as Chequered Plate, G.P. Sheet, H.R. Plate, G.P. Coil cut into sheet, H.R. Sheet, Cobble Plate etc. and on welding electrodes, used for manufacturing of Sponge Iron - Held that: - whether iron and steel item is to be considered as part or component or accessory of capital goods can be decided by applying user test as decided in Jawahar Mills Ltd. [2001 (7) TMI 118 - SUPREME COURT OF INDIA] and elaborated in CCE Vs.Rajasthan Spinning & Weaving Mills Ltd. [2010 (7) TMI 12 - SUPREME COURT OF INDIA], where it was held that Applying the "user test" on the facts in hand, we have no hesitation in holding that the steel plates and M.S. Channels, used in the fabrication of chimney would fall within the ambit of "capital goods" as contemplated in Rule 57Q - credit allowed. Penalty - Held that: - Reliance placed in the decision of Hon’ble Madras High Court in CCE, Salem Vs. Madras Aluminium Co. Ltd. [2016 (12) TMI 1374 - MADRAS HIGH COURT] which also deals with the scope of credit on similar items and also application of the concept of support structure while deciding the dispute, where it was held that there is no willful intent to evade duty and hence the question of invoking the penalty under section 11AC would not arise - penalty set aside. Credit allowed - penalty set aside - appeal dismissed - decided against Revenue.
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