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2017 (7) TMI 474 - AT - Central ExciseCENVAT credit - inputs - angles - plates - MS angles - MS joists/shapes/sections - channels - whether the goods have been used as inputs for manufacturing capital goods in the factory? - Held that: - At the time of visit of the officers, the director of the company had clearly admitted that they had wrongly taken the credit on these items and therefore, reversed the same - The appellants have admitted during the hearing that they had not declared anywhere that the capital goods were captively manufactured from the impugned goods in their factory and that no declaration had been made in the ER-1. In this backdrop, the production of Chartered Engineer certificate issued after two years to co-relate the use and consumption to manufacture of EOT crane and other items appears to be an attempt to justify irregularly used Cenvat credit - the case of Bajaj Hindustan Limited [2013 (9) TMI 536 - CESTAT, NEW DELHI], is directly applicable to the case, where the Tribunal held that the structural steel items used at the time of commissioning of new plant for production of the capital goods are not eligible for credit as inputs and that ER-1 returns did not declare their use in the manufacture of capital goods. Penalty - Held that: - Since the credit was irregularly taken and there is no production of capital goods under Notification No.67/95 dt.16.3.1995 and no declaration was made by the appellant in the ER-1, the penalty has been correctly imposed on the appellant. Appeal dismissed - decided against appellant.
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