TMI Blog2005 (7) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... Co. Private Ltd. (M/s. SCPL, for short) are a first stage dealer registered with the department. They purchased HR steel coil sheets, HR Steel coil plates and MS plates from various manufacturers and supplied cuttings thereof to M/s. Sri Renganathar Industries (P) Ltd. (M/s. SRIL, for short). In the invoices issued by SCPL to SRIL, these cuttings were described in the same way as the goods were de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t proposed to disallow, the above credit to SRIL and to impose a penalty on them for irregular availment of credit. In the same notice, the department sought to penalise M/s. SCPL under Rule 209A of the Central Excise Rules, 1944 for alleged abetment of offence committed by SRIL. The proposals were contested by the parties. The adjudicating authority disallowed Modvat credit of Rs. 3,98,434/- to S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l cuttings, MS plates, etc. and showing these items as falling under Heading 72.08. The invoices of SCPL under which these goods were received by SRIL also described the goods in the same way and showed them as classifiable under Heading 72.08. According to the Revenue, since these goods were received by SRIL as scrap in terms of purchase orders placed on SCPL, and were melted in their furnace, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit on the cuttings of plates, sheets, etc., supplied by SCPL. It is not in dispute that these are cuttings of plates, sheets, etc., falling under Heading 72.08. The Revenue has no case that the thickness of the plates, sheets, etc., was reduced in the activity of cutting. Obviously, the cutting process resulted in reduction of area only. Though thickness is a parameter relevant to classificat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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