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2012 (10) TMI 141 - AT - Central ExciseCENVAT Credit on capital goods used in energy saving project - denial as the capital goods were used in the manufacture of exempted product (Ammonia) exclusively - Held that:- To produce the desired end-product ammonia, the hydrogen is then catalytically reacted with nitrogen (derived from process air) to form anhydrous liquid ammonia. This step is known as the ammonia synthesis loop, thus, it can be seen that CO2 has been produced prior to, during and after the installation of energy saving device which was used for such production. A part of the production has been cleared on payment of Excise duty and therefore it cannot be said that the energy saving device installed in the factory was producing only the exempted goods - the demand for CENVAT Credit availed on the capital goods cannot be sustained - in favour of assessee. Taken credit twice on the basis of same document - Held that:- As the appellants have not disputed this issue & in fact, have found much more double entries and have reversed them voluntarily. Under these circumstances, the penalty for availment of credit twice also cannot be justified - in favour of assessee.
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