TaxTMI 
TaxTMI 
2011 (1) TMI 213
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.... availed benefit of Cenvat credit on HR Coil/Plates, MS Plates, MS Angles, MS Channels, MS Joints, etc. The lower authorities were of the view that the credit availed is irregular and did not fall within the scope of either capital goods or components. Coming to such a conclusion, a show-cause notice was issued on 19.7.2006 proposing to demand an amount of Rs. 1,84,327/-. The adjudicating authority after due process of law came to the conclusion that the assessee had availed Cenvat credit on certain capital goods such as HR Coils/plates, MS Angles, MS Channels, MS Joists, etc. which were used in the manufacture of machinery which is essential for the production activity. Coming to such a conclusion, he dropped the proceedings initiated in t....
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....l bunkers and its accessories. We find that the decision relied upon by the appellants are for the boilers. Since coal bunkers are not part of the boiler therefore these decisions relied upon by the appellants cannot be made applicable to the present case. We are of the view that coal bunkers are not part of boiler and not eligible for Modvat credit during the relevant period, hence the accessories and parts of coal bunkers are also not eligible for Modvat credit. Therefore, the lower authorities have correctly denied the credit and we uphold the findings of the Commissioner (Appeals). As regards chequered plates/hard plates, we find that these are general purpose items having multifarious use. The appellants before the lower authorities ha....
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....not covered either by the term machine, machinery, plant equipment or components, spares or accessories of machine, machinery plant and equipment, therefore these cannot be considered as capital goods within the purview of Rule 57Q of the Central Excise Rules at the relevant time. The decision relied upon by the appellants are given on the facts and circumstances and evidences produced in the particular case. In the present case we do not find that such structures can be considered as capital goods eligible for credit under Rule 57Q. We accordingly uphold the order of the lower authorities. 12. Regarding denial of credit on HR coils under sub-heading 7208.31 we find that the appellants had claimed that these are used for fabrication....
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....d more specifically paragraphs 23, 24 & 25 of the said decision (which are reproduced herein below) : 23. The third reason given by the Court in J.K. Udaipur Udyog for holding that the Cenvat Scheme was different from the Modvat scheme was Rule 57AC(1). However, that Rule is limited to inputs received in the factory of the manufacturer and does not impinge on Rule 57AB at all. 24.The schemes of Modvat and Cenvat credit are not therefore, different and we are unable to agree with the conclusion of the Court in J.K. Udaipur Udyog that the decision in Jaypee Rewa Cement (supra) would have no application to Cenvat Rules. 25. In our opinion the doubt expressed by the referring Bench about the correctness of the decision i....