TMI Blog2016 (11) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... pers, wagon tippler etc., elevator chains were used in the cement mill bucket elevators and MN castings were used in grate cooler. Similarly hydraulic nut was used in the cement mill and dumper assembly used in dumper which is part of the handling equipment. These descriptions show that the MS items were either used for fabricating the parts / components / accessories of capital goods or for repair and maintenance of such machinery and equipment. The issue whether MS items used for fabrication of capital goods / accessories or components and also whether they can be used for repair and maintenance is no longer res integra. The issue stands settled by the decisions relied upon by the appellant as well as by the decisions passed by the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of credit but reduced penalty ₹ 2,82,000/- from to ₹ 25,000/-. Being aggrieved by the disallowance of credit of ₹ 2,82,000/- and penalty imposed, the appellant has preferred the present appeal. 2. On behalf of the appellant, learned counsel Shri Lalit Mohan Chandana submitted that the sole allegation raised in the show-cause notice is that appellant availed credit of MS items under the category of capital goods and that these items do not fall within the definition of capital goods. He adverted to the list of MS items used in the factory for various purposes and submitted that MS items have been used for fabrication of parts/components/spares / accessories of capital goods and also for repair and maintenance of machin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w-cause notice. Along with that replay, he has submitted an annexure in which the appellant has given details [description of the various MS items and also the purposes for which they were used. Again on 22/10/2010, the appellant has issued a further letter to the Department giving details of the use, purpose, for which the subject items were used. Though the learned AR submits that the appellant has not furnished sufficient documents to establish the purpose for which the subject items were used, the Department has no case that the MS items received in the factory were diverted in any manner. On perusal of the list showing the purpose for which the subject items were used by the appellant, it is seen that the MS channels were used for repa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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