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2016 (9) TMI 89 - CESTAT CHENNAI

2016 (9) TMI 89 - CESTAT CHENNAI - 2016 (343) E.L.T. 1162 (Tri. - Chennai) - Cenvat Credit - Whether the asbestos sheet is covered under the ambit of capital goods or not - Held that:- the adjudicating authority in his findings clearly brought out what are capital goods and came to the conclusion that Asbestos sheets are not capital goods and the credit so availed on these items is recoverable. Further he has invoked extended period for suppression of facts with an intent to evade payment of dut .....

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erefore, the acceptance of the contention of the assessee would render the definition of the term “capital goods” to be redundant as well as the provisions relating to extending the benefit of Cenvat credit to the capital goods. - Invokation of extended period of limitation - Held that:- the contention of the appellant that the credit was availed in Oct 2011 and the notice demanding recovery of credit was issued on 3.6.2014; that the availment of credit was reflected duly in ER 1 returns an .....

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Respondent ORDER M/s. Subramaniya Siva Co-operative Sugar Mills Ltd., the appellant herein are engaged in the manufacture of Sugar and Molasses and availing Cenvat credit on various capital goods, inputs and input services. During verification of records by the department, it was found that the appellant assessee while modernizing the manufacturing process of sugar and molasses installed new machines with support of Iron and Steel structures availed Cenvat credit on it classifiable under Chapter .....

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CEA, 1944. On adjudication, the adjudicating authority confirmed recovery of wrongly availed cenvat credit of ₹ 9,164/- only along with interest and imposed penalty of ₹ 4,582/- towards wrong availment of replacement of cement asbestos sheets under Rule 15 (2) of CCR. On appeal, the Commissioner (Appeals) rejected the appeal and upheld the order of the adjudicating authority on the ground that OIO is proper and it needs no interference. Hence the present appeal. 2. Ld. Counsel Shri G .....

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at credit on the impugned goods since such availment of credit is duly reflected in the ER1 monthly returns filed by the appellant. The invoice for the material gives clear description of goods. On the basis of the records maintained by the appellant, SCN was issued. Hence, there is no suppression of facts with a malafide intention to evade excise duty. He relies on the following case laws in support of his contention. 1. Bhushan Steel & Strips Ltd. Vs. CCE, Raigad 2008 (223) ELT 517 (Tri.- .....

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and the Ld. Commissioner (Appeals) and submits that the impugned goods used as civil construction item is excluded from the ambit of capital goods defined under Rule 2 (a) (A) of CCR, 2004. It is clearly established that the assessee had contravened the provisions of CCR inasmuch as they had wrongly availed Cenvat credit on Asbestos sheet which is not a capital goods. Only on verification of records, irregular availment of cenvat credit on Asbestos sheet came to light. Hence, suppression of fac .....

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sion that Asbestos sheets are not capital goods and the credit so availed on these items is recoverable. Further he has invoked extended period for suppression of facts with an intent to evade payment of duty and hence penalised them under Rule 15 (2) of CCR, 2004. The reliance placed by the Ld. Counsel in the decision of the Mumbai Bench of the Tribunal in the case of Bhushan Steel & Strips Ltd. Vs. CCE, Raigad (supra) would not apply to the instant case as in that case it was technically e .....

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spares nor accessories of capital goods. 7.2 We find that all the manufacturing processes of Pickling/Cold Rolling/Annealing/Galvanizing/Coil Color Coating are to be carried out under controlled specific temperature and in dust free environment. If exposed to the environment, required parameters cannot be maintained & final goods cannot be produced as per desired specifications. High pressure air wipers are used to clean the sheet at the time of CR Rolling. Hence, it is essential to provide .....

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rolling (which is rolled in microns thickness), it would create roll marks on the rolls as well as on the material; therefore Dust free environment is essential. 7.3 The claim of Ld. D.R. that Roofing material may not be a technical requirement as civil work was going on during plant visit gets negated from the fact, as seen, that since civil work in the extension area had started, the manufacturing activity abutting thereto was suspended till completion of such civil work. In a nutshell, a man .....

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