Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 767 - AT - Central ExciseDemand of interest and penalty on reversal of credit - manufacture of erection and installation of the furnace within the factory of the appellant - Revenue denied the Cenvat credit only on the ground that no duty was paid on the furnace either by the appellant or contractor i.e. M/s. Bharat Gears Ltd, therefore credit for input used for manufacture of erection and installation of the furnace is not admissible - Held that:- Input on which Cenvat credit was availed were indeed used in manufacture of erection and installation of the furnace, in terms of Notification No. 67/95 CE dated 16/3/95 input includes in the goods used in the manufacture of capital goods and if such capital goods used within the factory for manufacture of dutiable goods the furnace was exempted under Notification No. 67/95 but input used in manufacture of such furnace is clearly covered under the definition of input therefore the credit on the input used in the manufacture of furnace is admissible. However appellant has not disputed the denial of Cenvat Credit and paid the said amount admittedly and not contested. In view of the my above observations Cenvat Credit was otherwise admissible, penalty should not have not been imposed therefore said aside the penalty. As regard the interest demanded by the Ld. Commissioner (Appeals) in his order, I find that the adjudicating authority in his order explicitly dropped the demand of interest against which Revenue has not filed any appeal before the Commissioner(Appeals) therefore the said portion related to interest of the order attained finality and since no appeal made by the Revenue Ld. Commissioner(Appeals) should not have passed any order in respect of interest, for this reason the interest demanded by the Commissioner(Appeals) in his order is hereby dropped. It is made clear that since the appellant have not contested demand of Cenvat Credit which was paid by them suo- moto without contest the same stand confirmed. - Decided partly in favour of assessee.
|