TMI Blog2022 (10) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... ility of Cenvat Credit on Welding Electrodes has to be decided in favour of the appellant, as the same being no longer res integra. Levy of penalty - HELD THAT:- In light of the undisputed fact that the Appellant was regularly filing the periodic statutory Returns disclosing therein the factum of availment of credit as impugned herein, to the satisfaction of the jurisdictional Authorities, the demand in the present case is barred by limitation and therefore, the penalty on the Appellant is not imposable under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Act. Also, the Show Cause Notice in the present case having been issued purely on the basis of the AG Audit objection, without any independent investigat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at credit thereon is admissible as having been used in the manufacture of its final product. Subsequently a Show Cause Notice dated 28.09.2015 was issued for recovery of Rs.28,552/- with interest and for imposition of penalty under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. The Adjudicating authority confirmed the demand which was upheld by the First Appellate authority. Hence the present Appeal before the Tribunal. 2. Heard both sides and perused the Appeal records. 3. I find that the AG Auditors raised the objection in respect of availment of Cenvat Credit on Welding Electrodes in light of the decision of this Tribunal in the case of SAIL (supra), rendered on 17.07.2007, by pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Raipur [2003 (159) E.L. T. 553 (Tri.-LB) ] Wherein it was held that Cenvat Credit is not admissible on welding electrodes. 6. In 2007 the Tribunal in the case of Ramala Sahkari Chinni Mills Ltd. Vs. CCE, Meerut-I [2007 (211) E.L.T. 412 (Tri.-Del.)] held that welding electrodes are not eligible for credit either as capital goods or as inputs. This decision was appealed against in the Supreme Court as reported 2010 (260) E.L.T. 321 (S. C. ) wherein the Hon ble Supreme Court referred the issue, more particularly the question of interpretation of the term includes as used in the definition of Input , to a Larger Bench. The Larger Bench of the Supreme Court, as reported in 2016 (334) E.L.T. 3 (S.C.) disposed of the reference by holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garding admissibility of Cenvat Credit on Welding Electrodes has to be decided in favour of the appellant, as the same being no longer res integra. 11. In any view of the matter, in light of the undisputed fact that the Appellant was regularly filing the periodic statutory Returns disclosing therein the factum of availment of credit as impugned herein, to the satisfaction of the jurisdictional Authorities, the demand in the present case is barred by limitation and therefore, the penalty on the Appellant is not imposable under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Act. 12. Also, the Show Cause Notice in the present case having been issued purely on the basis of the AG Audit objection, without any ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
