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2016 (1) TMI 475 - AT - Central ExciseDenial of CENVAT Credit - credit on steel items used in fabrication of capital goods - repair and maintenance of the old machines. - Held that:- Assessee is a manufacturer of electrical insulators. To manufacture their final product, assessee is required to manufacture kilns, dryer, chimney, glazing machine etc. Admittedly all these machines are fabricated by the assessee in their factory by using the steel items in question. In assessees’ own case for the earlier period, same items used for same purpose on the same ground, this Tribunal held that assessee is entitled to take cenvat credit as per Final Order [2015 (12) TMI 844 - CESTAT NEW DELHI]. Therefore, following the precedent decision of this Tribunal in assessees' own case, I do not find any infirmity in the impugned order for allowing cenvat credit on steel items used in fabrication of Klins, dryers, storage tank, chimney, curing corusal glazing machines, racks etc. and repair and maintenance of the old machines. In these terms, appeal filed by the Revenue stand dismissed. Regarding imposition of penalty for steel items used in civil construction by the assessee - Held that:- In the show cause notice modus operandi of the assessee is missing. Although the appellant has already reversed the cenvat credit which was taken earlier along with interest on pointing by the Departmental officer at the time of investigation. In these terms, it cannot be said that assessee has taken the cenvat credit with malafide intention. As mansarea is missing in the show cause notice, therefore, penalty on the assessee is not imposable - Decided in favour of assessee.
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