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M/s. Tinplate Company of India Ltd. Versus CCE-Jamshedpur

2017 (1) TMI 1121 - CESTAT KOLKATA

MODVAT/CENVAT Credit - eligibility of credit - capital goods mainly CRSS Coil, HR Coils and Copper Cathode - Held that: - the eligibility of Cenvat/Modvat Credit on capital goods or inputs are depending on the use of the items in the manufacture of the final products as defined in the Cenvat Credit Rules or erstwhile Central Excise Rules, 1944 - In the present case, either the appellant had not produced the details of the use of the items before the lower authorities or the Adjudicating Authorit .....

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ellant herein have preferred this appeal against the de novo order passed by the Commissioner of Central Excise, Jamshedpur on 25.05.2011, wherein MODVAT credit amounting to ₹ 4,27,662/- availed on CRSS and HR coils and ₹ 72,037/- availed on Copper Cathode is disallowed and penalty of ₹ 6,52,623.73 imposed under Rule 57U and ₹ 50,000/- under Rule 73Q of Central Excise Rules, 1944. This is the second round of litigation before this Tribunal. In the earlier round, this Trib .....

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cover boxes which act as annealing furnace furniture and Copper Cathodes which are used in conductor rolls shop for giving Copper coatings to conductor rolls. 2.1 The Plates/coils so brought into the factory for the purpose of making cover boxes Coverings, are cut to size by shear machine. Thereafter track welding is done to form a cover shape as per specification of the size of the plates and finally full welding with SS Electrodes is done on all the edges, inside and outside. After fabricatio .....

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used in the conductor rolls shop giving copper coating to the conductor rolls to avoid damage of rolls caused by the friction in conductor rolls during the process of rolling. 2.3 The appellants had recorded these items originally in capital goods Cenvat register and subsequently removed to input register. 2.4 The ld.Consultant submitted that the ld.Commissioner has failed to appreciate that the cover box manufactured from CRSS sheets and HR Coils are for the manufacturing of special type of cov .....

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it has direct nexus to the manufacturing of final products and accordingly the Cenvat Credit of duty paid on Copper Cathodes are available to the appellants. The mere fact that these items were inadvertently entered in the Cenvat Credit register of capital goods in place of Cenvat Credit register of inputs, the inputs cannot be treated as capital goods and the appellants have subsequently transferred the entries of these items from capital goods register to input credit register. 2.6 The ld.Cou .....

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bricate spares of machine requires expertise and it would not be economical to develop capacities to fabricate replaced spares when the same is normally available in the market at a lesser cost. Accordingly CRSS Coils, HR Coils do not qualify either as capital goods as defined or as inputs as per Rule 57A of the Central Excise Rules, 1944 and hence Cenvat Credit cannot be allowed. 4. Heard both sides and perused the case records. 5. On perusal of the impugned order, I find that the Adjudicating .....

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