TMI Blog2023 (6) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... per Rule 2(k) of Cenvat Credit Rules, 2002, Input includes goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. In the present case, the Angles, Channels, Beams, Joists are the inputs used in the manufacture of capital goods namely, pollution control system. The structure and effluent system are taken together constitute a unit of pollution control system. Hence, it can be construed that the Angles, Channels, Beams are used in the manufacture of capital goods and hence they fall within the ambit of inputs eligible for credit - The Appellant are eligible for the credit of Rs.5,82,44,793.93 availed on the Angles, Channels, Beams, Joists used in the manufacture of capital goods. Disallowance of credit taken on welding Electrodes and MIG wires - HELD THAT:- The Appellant stated that the the said goods were used in the manufacture of capital goods and in the repairs and maintenance of plant and machineries and hence they are eligible for the credit. In support of their contention, they relied upon the decision in the case of AMBUJA CEMENTS EASTERN LTD. VERSUS COMMISSIONER OF C. EX., RAIPUR [ 2010 (4) TMI 429 - CHHAITISGARH HIG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and certain other things required for the manufacture of the machines and capital goods and availed Cenvat credit on the same. On 28/01/2009, a stock verification was conducted at the Appellant s factory by the Anti-Evasion Unit of Haldia commissionerate and they found a shortage of 189.50 M.T of pig Iron in comparison to the statutory records. Some other discrepancies were also noticed during the verification. 3. The Appellants were issued with a show- cause-cum-Demand Notice under C.No V(12)3/HAL/AE/Ramsarup/2009 dated 2.9.10 asking them to show-cause as to why (i) Central Excise duty amounting to Rs. 3,80,611/- on the shortage quantity of 189.50 M.T of Pig Iron shall not be recovered in terms of proviso to sub-section (1) of Section 11 A of the Central Excise Act, 1944. The amount already paid was proposed to be appropriated. (ii) the credit of Rs.5,82,44,793.93 availed and utilized wrongly on Angles, Channels, Beams, joists etc. in contravention of the provision of CENVAT Credit Rules, 2004 should not be denied and recovered from the appellants in terms of Rule 14 of the CENVAT Credit Rules 2004 read with proviso to Sub section (1) of Section 11A of Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in 2001 (132) ELT 3(S.C) (ii) Hindusthan sanitary wire Industries Ltd. reported in 2001 (47) RLT 837, (iii) Lloyds Steel Industries Limited reported in 2004 (64) RLT 732 (Tri-Mum) (iv) India cement Limited reported in 2005 (129) ECR 222 (Tri Chennai) (v) Prism Cement reported in 2006(199) ELT 777(M.P) (vi) Divi s Laboratories Limited reported in 2006 (132) ECR 172(Tri-Bang), (vii) Uttam Sugar Mills Limited reported in 2006(216) ELT(Tri Del), (viii) Aditya cement reported in 2008 (221) ELT 362 (Raj) Lloyd Metal Engineering Limited reported in 2008(226) ELT 599, (ix) Bandana Global Limited reported 2008(88)RLT 176. (4) The Appellant contended that it is a settled law that extended period cannot be invoked when the assesse acted on a bonafide belief. In support of this contention the Appellant cited the following decisions: (i) Supreme labour industries reported in 2011(273) ELT 301 (Tri-Mum), (ii) Continental Foundation Jt. reported in 2007 (216) ELT 177(S.C), (iii) Padmini products reported in 1989(43) ELT 195(S.C) (iv) Cosmic Dye Chemical reported in 1995(75)ELT 721(S.C), (v) Nestle In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn used in the manufacture of their final products. The said goods were also used in the pollution control system. The structure and effluent system are taken together will constitute a unit of pollution control system. 8.3 As per Rule 2(k) of Cenvat Credit Rules, 2002, Input includes goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. In the present case, the Angles, Channels, Beams, Joists are the inputs used in the manufacture of capital goods namely, pollution control system. The structure and effluent system are taken together constitute a unit of pollution control system. Hence, it can be construed that the Angles, Channels, Beams are used in the manufacture of capital goods and hence they fall within the ambit of inputs eligible for credit. Accordingly, we hold that the Appellant are eligible for the credit of Rs.5,82,44,793.93 availed on the Angles, Channels, Beams, Joists used in the manufacture of capital goods. 8.4 The impugned order disallowed credit of Rs.33,63,796.67, taken on welding Electrodes and MIG wires. The Appellant stated that the the said goods were used in the manufacture of capital goods and i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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