TMI Blog2014 (8) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... al product and therefore, Cenvat credit cannot be denied - Decided in favour of assessee. - E/30/2014, E/17 & 437/2005 and E/445 & 837/2006 - Final Order Nos. 40690-40694/2014 - Dated:- 11-8-2014 - Shri P.K. Das, Member (J) and R. Periasami, Member (T) Shri R. Janardhanan Pillai, Consultant, for the Appellant. Shri M. Rammohan Rao, DC (AR), for the Respondent. ORDER Common issue is involved in these appeals and therefore, all are taken up together for disposal. 2. The relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of Aluminium Knitting Pins, Plastic Knitting pins, Snap Fasteners and Safety Pins, etc., classifiable under Chapters 73, 76 and 90 of the CETA 85. They receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - SCN, dated 29-9-05 - 10-9-04 to 30-6-05. The adjudicating authority confirmed the demands of duty along with interest and imposed penalty in respect of first four show cause notices and dropped the proceeding in respect of last show cause notice dated 29-9-2009 (Appeal E/837/2006). The appellants filed appeals before the Commissioner (Appeals) against the first four adjudication orders. Similarly, Revenue filed appeal against the last adjudication order. By the impugned orders, the Commissioner (Appeals) rejected the appeals of the appellant and allowed the appeal of the Revenue. Hence, the appellant filed these five appeals. 3. After hearing both sides and on pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in show cause notice dated 29-9-2005 may be discussed. The appellant availed Cenvat credit in respect of inputs used in the manufacture of jig wires and jig rods. In the instant case, the appellant availed Cenvat credit on inputs used in the manufacture of jig wires and jig rods cleared without payment of duty under Notification No. 67/95, dated 16-3-1995. So, the amount of Cenvat credit on inputs used in jig wires and jig rods would be denied. 3.2 It is the case of the Revenue that jig wires and rods were used as a tool in the manufacture of Knitting Pins, these are capital goods. The adjudicating authority also observed that these items are classifiable as capital goods . But, the Commissioner (Appeals) observed that these items are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... become disentitled to avail the exemption Notification No. 67/95-C.E. meant for the capital goods for captive use as discussed supra and therefore, the impugned item is liable to be assessed to duty at this stage. The order of the lower authority in demanding duty on the impugned goods along with interest under Section 11AB is sustainable in law. I find no legal infirmity in the impugned order in this regard. 4. The ld. Consultant relied upon the decision in the case of Escorts Ltd. v. CCE, Delhi - 2004 (171) E.L.T. 145 (S.C.). In that case, the appellants were manufacturers of tractors. They availed Modvat credit in respect of the duties paid on inputs used in the manufacture of parts. The parts were cleared to another factory of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch duty is paid. We clarify that in respect of parts which are sold in the open market and/or used for manufacture of tractors on which no duty is paid, the benefit of the Notification No. 217/86-C.E., dated 2nd April, 1986 may not be available. He also relied upon the decision of the Tribunal in the case of Shalimar Paints Ltd. v. CCE, Calcutta - 1994 (72) E.L.T. 186 (Tribunal), wherein the appeal of the assessee was allowed. The relevant portion of the judgment is reproduced below :- 6. The claim made by the present appellants before the Collector (Appeals) that the resins are intermediate products in the manufacture of paints was rejected by that authority on the ground that they were fully manufactured products attracting classi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only in respect of a final product otherwise dutiable and not a purely intermediate product occurring in the reaction chamber in the course of manufacture. The intermediate products, in the context of Rule 57D(2), are those products which are used in the factory where they are produced in the manufacture of other final products. The decision of the Tribunal in Jenson Nicholson is fully applicable to the present case the Modvat Scheme quite similar to the Credit Scheme under Rule 201/79. The Hon ble Supreme Court in the case of Eastern Electro Chemical Industries v. CCE - 2005 (181) E.L.T. 295 (S.C.) held as under :- 5. Having regard to the admitted facts on record, we are of the view, that the CEGAT was clearly wrong in its approa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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