2007 (8) TMI 558

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....), compressor springs and tensions, sleeves, M.S. fabricated bends, blades and electrical parts, rock wool blended etc. 2. Several show cause notices were issued to the appellant proposing recovery of credit in respect of various items, which, according to the Revenue, were not covered under the definition of "capital goods" in terms of Rule 2(b) of the Cenvat Credit Rules, 2001/2002. The appellant was manufacturing sugar and molasses and had availed Cenvat credit in respect of these items. 3. In Excise Appeal No. 3421 of 2005, the Cenvat credit amounts of Rs. 463/- and Rs. 1474/- were disallowed in respect of welding electrodes and gaskets jointing sheets etc. In Excise Appeal No. 3422 of 2995 Cenvat credit of Rs. 31,404/-,....

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....ther hand, contended that, all the noticees were issued under Rule 13(1) in which no mens rea was required and therefore, even for innocent wrongful availment of Modvat credit, penalty was imposable. 5. The issue, whether welding electrodes used in the maintenance and repairs of plant and machinery, can be said to have been used for the manufacture of excisable goods and whether these were eligible for Cenvat credit, stands concluded in favour of the Revenue by the decision of the Larger Bench of the Tribunal in the case of Jaypee Rewa Plant (supra) and the decision in Triveni Engineering and Industries Ltd. v. CCE, reported in 2005 (186) E.L.T. 128. The challenge against the impugned order denying Modvat credit for electrodes canno....

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....was, therefore, set-aside in that case. Following this decision, in Excise Appeal Nos. 3115 and 3121 of 2005 decided on 2-8-2007, the Single Member Bench set-aside the penalty without going into the question of applicability of minimum penalty prescribed by Rule 13. 7. It is possible to take a view that, the benefit of conflicting views, for not imposing penalty, can be extended only in cases where mens rea is required involving intention to evade duty. In cases where such mesn rea is required, an assessee can take a defence that he was only following the view of the Tribunal which was in his favour and, therefore, there was no intention to evade duty. However, in cases where no such mens rea is required such as those falling in Rul....

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....to another, were components and/or accessories of plant and machinery installed in the factory and the said item qualifies for Modvat credit as capital goods. In the present case, the asbestos gaskets are said to be used in boilers, sulphur furnace, quads, pans and pumps.  Therefore, they can be considered as parts of the machinery. Hence, even after the omission of the word 'plant' in the subsequent rules, the Cenvat credit would be admissible in respect of such asbestos gaskets without which the machinery cannot function. In CCE, Meerut-II v. Kisan Sahkari Chini Mills Ltd., reported in 2007 (78) RLT 820 (CESTAT-Del.), it was held that, the decision of a Single Member Bench in Upper Ganges Sugar (supra) stands impliedly overruled on t....

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....of the components in the nature of CR coils, MS fabricated bends/blades and electrical parts which were used in the factory of the manufacturers because these were components of the goods falling in sub-clause (i) being the machineries falling in Chapters 84 and 85, as stated by both the sides. CR coils are used for cladding insulation on pipes on various sugar manufacturing machinery. Electrical parts (rock wool) are also used for cladding insulation on sugar manufacturing machinery and pipes. These are, therefore, components or parts of machinery without which the machinery cannot function. As clarified by circular No. 276/110/96-TRU, dated 2-12-1996 issued by the Board, the scope of the corresponding entry under Rule 57Q was not restrict....