TMI Blog2016 (5) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... , penalty imposed by the adjudicating authority, and upheld by the first appellate authority, is set aside. Classification - Copper Bonded Grounding Rods - Held that:- product manufactured by the appellant has undergone specific processes to make the same usable solely and principally for lightning arrester system. Reliance placed by the appellant on the drawback schedule published by the Department and export made by other appellants is not of any help because it is not coming out of the list of other exporters whether any specific processes were also undertaken by those exporters on the “Copper Bonded Grounding Rods” exported. Accordingly, it is held that classification of the goods manufactured by the appellant will be CETH 8538.00 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng support structures for the capital goods and are not admissible as CENVAT Credit on capital goods. Ld. Consultant submitted that the entire amount of CENVAT Credit denied alongwith interest, has been paid by the appellant. That no penalty is imposable upon the appellant for wrongly taking CENVAT Credit because the issue was disputed and larger bench in the case of Vandana Global Ltd. Vs. CCEx., Raipur reported in 2010 (253) ELT 440 (Tri-LB) decided the issue. That once an issue required larger bench s decision then the appellant cannot be held responsible for suppression with intention to evade payment of duty. 3. That the second issue involved is regarding classification of Copper Bonded Grounding Rods exported by the appellant. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause notice to argue that Shri Josh, Director of the appellant in his statements dated 22/9/2004 and 9/9/2005 have specifically admitted that copper bonded grounding rods are specially used for earthing purposes as a part of lightning arrester. It was thus strongly argued by the Ld. A.R. that the classification of the goods Copper Bonded Grounding Rods has been correctly decided under Central Excise Tariff Heading 8538.00 as the same are solely and specifically used as part of lightning arrester. 5. Heard both sides and perused the case records. The issues involved in this appeal are as follows: i) Whether penalty with respect to CENVAT Credit of ₹ 1,23,905/- taken by the appellant is required to be imposed? ii) What s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and specifically usable in lightning arrester systems. It is observed from the case records that special processes are done by appellant on a Copper Bonded Grounding Rods and one end of such rods are given special tampering. It is also observed that Shri Josh, Director of the appellant in his statements dated 22/9/2004 and 9/9/2005 has specifically stated that Copper Bonded Grounding Rods are specifically used for earthing purposes as a part of lightning arresters.The said statements have not been retracted by the appellant at any stage. 7. In view of the above factual matrix, product manufactured by the appellant has undergone specific processes to make the same usable solely and principally for lightning arrester system. Reliance p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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