2009 (5) TMI 502

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to, Respondent had availed Modvat credit on capital goods which were exclusively used in the manufacture of Ammonium Sulphate (Fertiliser) which is exempted product. Show Cause Notice was issued for recovery of the credit and also imposition of penalties. Before issue of the Show Cause Notice, the Respondent had already reversed the entire amount which had been taken by them. The said Show Cause Notice was adjudicated by the Deputy Commissioner of Central Excise and confirmed the demand for recovery and imposed penalty of Rs. 4,52,760/- and also ordered recovery of interest. Aggrieved by the said order, the Respondent preferred an appeal before the Commissioner (Appeals). The Commissioner (Appeals) after considering the submissions made by ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the issue is squarely covered by the decision of the Tribunal in the case of Ruchi Health Foods Ltd. v. CCE, Chennai [2007 (218) E.L.T. 716 (Tri.-Chennai) = 2009 (13) S.T.R. 330 (Tri.-Chennai)] for the proposition that for the machinery installed which is not exclusively used to manufacture of exempted goods, the credit should be allowed. He also relied on the Tribunal's decision in the case of CCE, Nagpur v. Lloyds Metals & Engineering Ltd. [2004 (177) E.L.T. 740 (Tri.-Mumbai)] in the said proposition. It is the submission that Ammonium Sulphate Plant which was installed by the Respondent was statutorily required to separate hazardous chemicals and toxic gases from junk gas or raw Coke Oven gas emanating from the Coke Oven Plant. It was th....