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2022 (10) TMI 7 - AT - Central ExciseCENVAT Credit - capital goods - Welding Electrodes - case of appellant is that welding electrodes are used for fabricating Steel Formers (size: Diameter 1100mm & Height 2350mm with 16mm rods as Spiders inside) which are consumed in its induction furnace - levy of penalty - HELD THAT:- In view of the decision of the Hon’ble Calcutta High Court in CCE., KOLKATA-IV VERSUS HINDUSTAN ENGINEERING & INDUSTRIES LTD. [2010 (12) TMI 393 - CALCUTTA HIGH COURT], which is the jurisdictional High Court of this Bench, and particularly in the absence of any contrary decision holding the field, the issue regarding admissibility of Cenvat Credit on Welding Electrodes has to be decided in favour of the appellant, as the same being no longer res integra. Levy of penalty - HELD THAT:- In light of the undisputed fact that the Appellant was regularly filing the periodic statutory Returns disclosing therein the factum of availment of credit as impugned herein, to the satisfaction of the jurisdictional Authorities, the demand in the present case is barred by limitation and therefore, the penalty on the Appellant is not imposable under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Act. Also, the Show Cause Notice in the present case having been issued purely on the basis of the AG Audit objection, without any independent investigation, is not sustainable in law. Appeal allowed - decided in favor of appellant.
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