TMI Blog2012 (11) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... said larger Bench decision, the claim of the assessee in respect of allowance of modvat credit on such Welding Electrodes was rejected, but, at the same time, claim of the Department for penalty was rejected on the ground that the case was contentious and similar cases were being agitated before many forums Inasmuch as, the case was covered by Sub-Rule (1) of Rule 13 of the said Rules, in view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f any person, takes CENVAT credit in respect of inputs or capital goods, wrongly or without taking reasonable steps to ensure that appropriate duty on the said inputs or capital goods has been paid as indicated in the document accompanying the inputs or capital goods specified in rule 7, or contravenes any of the provisions of these rules in respect of any inputs or capital goods, then, all such g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here appears to be no dispute are that the assessee obtained Modvat credit on Welding Electrodes while clearing excisable goods manufactured by it. In course of scrutiny of monthly returns relating to Modvat credit availed for the months of November, 2000 to September, 2001, it transpired that such credit was availed under Rule 57AB of the Central Excise Rules, 1944, read with Rule 3 of Cenvat Cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l good, is not permissible. In view of absence of evidence to the effect that Welding Electrodes were used for fabrication of capital goods and in view of the said larger Bench decision, the claim of the assessee in respect of allowance of modvat credit on such Welding Electrodes was rejected, but, at the same time, claim of the Department for penalty was rejected on the ground that the case was c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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