2008 (8) TMI 734

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....nalty of equal amount i.e. Rs. 19350/- was imposed. 2. The respondent are engaged in the manufacture of writing and printing paper. On 18-2-2006 the preventive staff of Central Excise Division visited their factory premises and on verification of records found that Cenvat credit on M.S. Angles and M.S. Channels to the extent of Rs. 19,350/- had been taken which was not permissible. The authorized signatory of the respondent in his statement under Section 14 of the Central Excise Act stated that the goods in question had been used in the structures inside the factory. The Director further stated that credit on the goods had wrongly been taken under bona fide mistake and undertook that amount will be debited. On 18-2-2006, the amount ....

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....d accessories of the goods specified at (i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; and (vii) storage tank '(k) "input" means- (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or st....

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....M.S. channels/angles were allegedly used. 5. From a plain reading of Explanation 2 to clause (k) and sub-clause (iii) of Rule 2(a)(A), it is manifest that unless the goods in question are used in the making of components, spares and accessories of any goods specified in any of the aforesaid four Chapters or heading/sub-heading of the Central Excise Tariff, they would not qualify to be inputs and if that is so, Cenvat credit cannot be taken thereon. As mentioned above, at the first opportunity, the stand of the respondent was that M.S. Channels/Angles had been used (as parts) in the 'structure' inside the factory. They later took a different stand that they had been used as parts for manufacture of components, spares and accessories ....