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2015 (6) TMI 690 - AT - Central ExciseCenvat credit - Runner Mass in the nature of input or capital goods - whether it is to be treated as an input for manufacture of the final product and eligible for 100% credit or it is a part of the capital goods and not eligible for 100% credit, whether the appellants are liable for penalty and whether the demand is hit by limitation or otherwise - Held that:- runner mass is not even used inside the furnace but it is used in the runner path which allows smooth flow of the molten metal therefore, the credit availed by the appellants as inputs is valid. Show cause notice was issued on 20.03.2009 demanding reversal of credit availed for the period from April,2005 to August, 2007, invoking the extended period. They have correctly declared the item as input to the department and availed 100% credit and also filed regular returns. As seen from the grounds of appeal at para-36, CERA carried out Audit in July 2004, August, 2008, and October, 2007, and internal audit of the department carried out audit in November,2003, March, 2005 and February, 2007 and February, 2008, no objection was raised either by CERA or by the internal audit. Considering it is only a question of interpretation and there is no suppression involved in this case. Therefore, the demand is also hit by limitation. - Appellants are eligible to avail 100% credit on the 'runner mass' as inputs. Accordingly, the impugned order is set aside - Decided in favour of assessee.
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