Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

DWARIKESH SUGAR INDUSTRIES LTD. Versus COMMISSIONER OF C. EX., MEERUT-II

2007 (8) TMI 558 - CESTAT, NEW DELHI

Cenvat/Modvat credit - Capital goods - Welding electrodes - whether welding electrodes used in the maintenance and repairs of plant and machinery, can be said to have been used for the manufacture of excisable goods and whether these were eligible for Cenvat credit - E/3421-3427/2005-SMB - 1264-1270/2007-SM(BR)(PB) - Dated:- 16-8-2007 - Justice R.K. Abichandani, J. REPRESENTED BY : Shri Atul Gupta, C.S., for the Appellant. Shri S.L. Meena, A.R., for the Respondent. [Order]. - All these seven app .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cording to the Revenue, were not covered under the definition of capital goods in terms of Rule 2(b) of the Cenvat Credit Rules, 2001/2002. The appellant was manufacturing sugar and molasses and had availed Cenvat credit in respect of these items. 3. In Excise Appeal No. 3421 of 2005, the Cenvat credit amounts of Rs. 463/- and Rs. 1474/- were disallowed in respect of welding electrodes and gaskets jointing sheets etc. In Excise Appeal No. 3422 of 2995 Cenvat credit of Rs. 31,404/-, Rs. 140, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. 3425 of 2005 Cenvat credit of Rs. 5498/- for asbestos jointing sheets was disallowed. In Excise Appeal No. 3426 of 2005 Cenvat credit of Rs. 23,148/-, Rs. 2,913/- and Rs. 9580/- for welding electrodes, asbestos jointing gasket sheets and CR coils (aluminium) respectively, was disallowed. In Excise Appeal No. 3427 of 2005 Cenvat credit of Rs. 876/-, Rs. 7907/- and Rs. 3988/- for welding electrodes and asbestos jointing gasket sheets was disallowed for electrical parts, respectively. In all thes .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ontended that, all the noticees were issued under Rule 13(1) in which no mens rea was required and therefore, even for innocent wrongful availment of Modvat credit, penalty was imposable. 5. The issue, whether welding electrodes used in the maintenance and repairs of plant and machinery, can be said to have been used for the manufacture of excisable goods and whether these were eligible for Cenvat credit, stands concluded in favour of the Revenue by the decision of the Larger Bench of the T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

trodes and it was, only the Larger Bench that set at rest the controversy by holding that no Modvat credit was admissible on these goods. In Titawi Sugar Complex v. CCE, Meerut-I, reported in 2005 (191) E.L.T. 396 (Tri.-Del.), which was relied on behalf of the appellant, it was held that, under these circumstances, imposition of penalty was not warranted. In CCE, Hyderabad-III v. Sri Vishnu Cements Ltd., reported in 2006 (201) E.L.T. 607, the Division Bench of the Tribunal observed that since th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ding electrodes, the Tribunal held that taking into account the facts and circumstances of the case, since during the relevant period, there were decisions taking divergent views, it was not a fit case for imposing penalty. Penalty was, therefore, set-aside in that case. Following this decision, in Excise Appeal Nos. 3115 and 3121 of 2005 decided on 2-8-2007, the Single Member Bench set-aside the penalty without going into the question of applicability of minimum penalty prescribed by Rule 13. 7 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of 2001/2002 [now Rule 15(1) of Rules 2004] under which the minium penalty of Rs. 10,000/- is prescribed, and which may extend even to penalty of an amount equal to the duty wrongly availed, there is no scope for taking up a defence that there was no intention to evade the duty. Even innocent wrongful availment merited penalty under Rule 13(1). However, since such distinction is not made and penalties have been waived in similar cases, there is no reason to meet out a different treatment to the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on Bench of the Tribunal in Commissioner of Central Excise, Patna v. Bihar Caustic and Chemicals Ltd., reported in 2000 (118) E.L.T. 196 (Tribunal), considering the earlier decision in Upper Ganges Sugar and Industries Ltd., reported in 1998 (98) E.L.T. 166 (Tribunal), held in paragraph 7 of the judgment that, compressed asbestos fibre jointing sheets, which were items used to seal the leakage and flow of liquids during the process of manufacture from one equipment to another, were components an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

CCE, Meerut-II v. Kisan Sahkari Chini Mills Ltd., reported in 2007 (78) RLT 820 (CESTAT-Del.), it was held that, the decision of a Single Member Bench in Upper Ganges Sugar (supra) stands impliedly overruled on the said issue by virtue of the ratio of the decision in Commissioner of Central Excise, Patna v. Bihar Caustic and Chemicals Ltd. (supra). Therefore, denial of Cenvat credit in respect of asbestos joint gasket sheets and imposition of penalty is not justified. 9. As regards the item .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

clauses (i) and (ii). In sub-clause (i) goods falling under Chapters 82, 84, 85, 90, heading 68.02 and sub-heading 6801.10 of the first schedule of the Tariff Act, are specified, while pollution control equipment is specified in sub-clause (ii). There is no requirement that components, spares and accessories of these goods should themselves fall under sub-clause (i) or sub-clause (ii). Components, spares and accessories may fall under any sub-heading or heading. So long as they are components an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. CR coils are used for cladding insulation on pipes on various sugar manufacturing machinery. Electrical parts (rock wool) are also used for cladding insulation on sugar manufacturing machinery and pipes. These are, therefore, components or parts of machinery without which the machinery cannot function. As clarified by circular No. 276/110/96-TRU, dated 2-12-1996 issued by the Board, the scope of the corresponding entry under Rule 57Q was not restricted only to components, spares and accessori .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version