2010 (12) TMI 368

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....al Authority confirmed demand of R. 3,86,288/- alongwith interest and imposed equal amount of penalty. Order of the Original Authority stands upheld by the Commissioner (Appeals). 4. Ld. Advocate for the appellants, at the outset submits that due to smallness of amounts they are not contesting the demand relating to M. Seal, Chain, Fire creat, Electric goods and cables. Total amount involved is Rs. 17,217/- and interest there of. However, he is contesting penalty imposed. Drawing my attention to the detailed use of the inputs and the items claimed as capital goods, he submits that there is no justification for denial of credit in respect of other items. He particularly draws my attention that the Original Authority after taking note....

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....of Gunny Bags after packing of sugar in such bags. This is a packing material directly used for packing of sugar. (v) RENICIDE - TH. 38.08 This is used during the process of milling of the cane to prevent bacterial growth during this process. This helps in removal of bacteria, fungus and dextran etc., from the sugarcane juice and adds to the output of sugar. 7. Use of these items as mentioned above, clearly indicates that they are to be considered as inputs. In respect of welding electrodes as pointed out by the ld. Advocate, the welding electrodes used in repair and maintenance has been treated as inputs eligible for cenvat credit in terms of judgment of the Hon'ble High Court of Chhattisgarh in the case of Ambuja Cement....

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....s an important machinery in Sugar Plant. Boiler falls under T.H. 8402 of the Central Excise Tariff Act. The goods in question have been used for insulation of the boiler. Therefore, the same being parts/components/accessories of Boiler falling under specified Chapter 84, are duly covered within the definition of Capital Goods, as in case of (i) & (ii) above. (iv) SPARES OF MACHINES C.S. HUB for Conveyer Idler Roller C.S. Brake Drum Puller for Cane Unloader C&CT Wheel for Cane Unloader. The description of the above items as mentioned in the invoice No. 170 dated 25-8-2005 of M/s. Prem Chand Industries, Ghaziabad. The description on invoice itself shows that these are parts of Cane Unloader, Idler Roller/Bugasse Belt Conve....