TaxTMI 
TaxTMI 
2015 (5) TMI 285
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....rials and capital goods used for the erection and commissioning of the paint shop for motorcycles division; 3. Credit on the air conditioners installed and used in the office premises within the factory; 4. Credit on account of inputs sent to job workers but not received back within the stipulated time; 5. Credit on the mould and dies without possession and use Consequently, a show cause notice was issued to deny Cenvat credit and on adjudication the demand proposed in the show cause notice was confirmed alongwith the interest and penalty of Rs. 2,05,76,849/- to the same is confirmed. Aggrieved from the said order, appellant before us. 2. Brief facts of the case are that the appellants are manufacturer of motorcycle and scooters. Fo....
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....wed the Cenvat credit on these items therefore he prayed Cenvat credit on the items be allowed. For items mentioned at Sl. No. 3 and 4 of the table, he is not contesting and given up the issue and also submitted that as they already reversed the Cenvat credit and sufficient balance was lying in their Cenvat credit account, therefore, following the decision of Hon'ble High Court of Karnataka in the case of CCE & ST, LTU, Bangalore vs. Bill Forge Pvt. Ltd. reported in 2012 (279) E.L.T. 209 (Kar.) interest is not payable. He further submits that as they reversed the Cenvat credit on these items, therefore, as per the provision of Section 11A (2) (b) of the Act, interest is not payable and Commissioner is given the benefit of Section 11A (2....
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....ligible for Cenvat credit. In my view, this objection by the department is absurd, as for permitting capital goods Cenvat credit, what has to be seen is as to whether the goods fall in the Chapters specified in the definition of capital goods or are the items specifically mentioned in the definition of capital goods and secondly whether those goods were used in the factory. The purpose for which the goods were used and whether after use the goods became part of plant and machinery fixed to/embedded to the earth is not relevant. If Revenue's contention is accepted, the provisions regarding capital goods Cenvat credit would became redundant, as most of the Chapter 84 and Chapter 85 items and pipes and tubes have to be installed and after ....