TMI Blog2015 (11) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... 16/3/95 input includes in the goods used in the manufacture of capital goods and if such capital goods used within the factory for manufacture of dutiable goods the furnace was exempted under Notification No. 67/95 but input used in manufacture of such furnace is clearly covered under the definition of input therefore the credit on the input used in the manufacture of furnace is admissible. However appellant has not disputed the denial of Cenvat Credit and paid the said amount admittedly and not contested. In view of the my above observations Cenvat Credit was otherwise admissible, penalty should not have not been imposed therefore said aside the penalty. As regard the interest demanded by the Ld. Commissioner (Appeals) in his order, I fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. M/s. Bharat Gears Ltd processed input provided by the various parties on behalf of the vendor in the construction of the furnace in the factory of the appellant. The Revenue proposed denial of Cenvat Credit on the ground that furnace manager erected and installed in the factory of the appellant, no excise duty was paid on that, therefore Cenvat credit is not admissible. The show cause notice was issued dated 30/4/2009 which was culminated into adjudicating order wherein the adjudicating authority confirmed demand of ₹ 2,96,017/- imposed of equal amount of penalty however the dropped the demand of interest. Aggrieved by the said order appellant filed appeal before the Commissioner(Appeals) only for waiver of penalty as they had p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of erection and installation of the furnace is not admissible. I do not agree with this contention of the Revenue for the reason that the furnace is specified capital goods as per the definition provided under Cenvat credit Rules, 2002. Input on which Cenvat credit was availed were indeed used in manufacture of erection and installation of the furnace, in terms of Notification No. 67/95 CE dated 16/3/95 input includes in the goods used in the manufacture of capital goods and if such capital goods used within the factory for manufacture of dutiable goods the furnace was exempted under Notification No. 67/95 but input used in manufacture of such furnace is clearly covered under the definition of input therefore the credit on the input us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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