2008 (11) TMI 528

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....xcise Rules, 1944. A show cause notice dated 31-7-1996 was issued to them proposing to disallow irregular Cenvat credit of Rs. 7,06,111/- availed by them and for imposition of penalty on the ground that they had wrongly availed Cenvat credit on Bucket elevator chain, Bucket for elevator, Gas collecting hood, and Maly kote grease, Welding electrodes, Gas filling used in smelter house, HA refractory cement, Rigid stem thermal, Aluminium wire, Brass wire, M.S. forged round, M.S. round, Forged steel round, and Hot dia steel. Vide order dated 9-3-2006 the Additional Commissioner of Central Excise disallowed the entire credit and imposed a penalty of Rs. 2,00,000/- on the ground that none of the items qualify as capital goods. The Commissioner (A....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vator chain and Bucket for elevator are parts of handling equipment/parts of electrostatic precipitator. According to the Revenue, they do not play any role in the functioning of any machinery of which they had claimed to be parts. However, it is an admitted position in the show cause notice that these items are parts of material handling equipment/electrostatic precipitator. It is not the case of the Department that, material handling equipment/electrostatic precipitator are not machines, machinery, plant equipment etc. used for producing or processing any goods or for bringing about any change in any substance for the manufacture of final products. Hence, the parts thereof which are the disputed above mentioned items, qualify for being co....