TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Disallowance of CENVAT Credit for Mining Area Goods Upheld</h1> The Tribunal upheld the disallowance of CENVAT/Modvat Credit for items used in mines, ruling that credit is not admissible for goods used in the mining ... Cenvat/Modvat - Inputs used in mines - Penalty - Quantum of Issues:1. Disallowance of CENVAT/Modvat Credit for items used in mines.2. Imposition of penalties for default in payment of Central Excise duty.Analysis:Issue 1: Disallowance of CENVAT/Modvat Credit for items used in minesIn the case at hand, the Commissioner (Appeals) upheld the disallowance of CENVAT/Modvat Credit for items used in mines, which was challenged by the appellants. The appellants contended that the inputs were used for machinery intended for blasting limestone in the manufacture of cement within the factory precincts. However, the Tribunal held that even if the mines were adjacent to the factory, they were not within the precincts of the factory. The Tribunal cited the decision of the Hon'ble Apex Court in a similar case and concluded that CENVAT/Modvat credit is not admissible for goods used in the mining area. Therefore, the Tribunal dismissed the appeals related to this issue.Issue 2: Imposition of penalties for default in payment of Central Excise dutyIn the second set of cases, the appellants defaulted in paying Central Excise duty on time, leading to penalties imposed under Rule 25 of the Central Excise Rules, 2002. The penalties were imposed based on the amount defaulted and the delay in payment. The appellants, being a BIFR Company, requested leniency. However, upon review, the Tribunal found the penalties imposed by the adjudicating authority to be reasonable, amounting to approximately 10% of the defaulted amounts. Consequently, the Tribunal deemed the Orders-in-Original to be legal and proper, rejecting the appeals related to the imposition of penalties.In conclusion, all six appeals were dismissed by the Tribunal based on the respective issues discussed and analyzed above. The Tribunal's decision was pronounced on September 1, 2005.
TaxTMI 
TaxTMI 
