9911796707
Advanced Search 
TMI Blog2013 (1) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, 2006 to February, 2010, payable in terms of Rule 6(3)(i) of the CENVAT Credit Rules, 2004 and Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11A(2) of the Central Excise Act, 1944 from M/s. Sree Rengaraaj Ispat (P) Ltd. (ii) Disallowance of CENVAT Credit of Rs. 63,57,046/- wrongly taken and utilized on ineligible capital goods in violation of Rule 6(4) of the CENVAT Credit Rules, 2004 and order recovery of the same from M/s. Sree Rengaraaj Ispat (P) Ltd., under Rule 14 of CENVAT Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1994. (iii) Demand of appropriate interest on the amounts mentioned at (ii) & (iii) above under the Rule 14 of the CENVAT Credit Rules, 2004 read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led before they are let out in the atmosphere. For this purpose, the applicants have installed a 'Waste Heat Recovery Boiler', an 'Electrostatic Precipitator' and 'Silos' in their manufacturing premises. The water in the 'Waste Heat Recovery Boiler' absorbs the heat in the flue gases and in the process 'steam' is generated. The steam, so generated is sold by the applicants without payment of duty in terms of Notification No. 6/2002-C.E. Therefore, a show cause notice was issued to the applicants for disallowance of CENVAT Credit availed by the applicants on 'Waste Heat Recovery Boiler' and also for payment of an amount equal to 10%/5% of the value of the exempted goods i.e., steam, cleared during the period March, 2006 to February, 2010 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of Hi-tech Carbon v. Commissioner of Central Excise, Allahabad reported in 2003 (161) E.L.T. 407 (Tri.-Del.), wherein this Tribunal has held that all gases are burn out and in turn is used in the boiler to generate steam, which is used in the manufacture of exempted products are chargeable to 'nil' rate of duty. 4. On the other hand, the learned DR strongly opposes the contention of the learned counsel and submitted that no doubt steam has been generated and the same was sold by the applicants for consideration to a power plant, therefore, the adjudicating authority is right in denying the CENVAT credit on 'Water Heat Recovery Boiler' and also demanded an amount equal to 10%/5% of the value of the exempted product. 5. Hear ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
