TaxTMI 
TaxTMI 
2014 (2) TMI 693
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....ey availed Cenvat Credit of Excise Duty paid on inputs and capital goods. The period of dispute is from Oct.'2007 to April'2009 as is clear from the Annexure to the Show Cause Notice. During this period the appellant took Cenvat Credit of Rs. 8,86,375/- in respect of MS Angles, Channels, Beams etc. which according to them were used in the manufacture of tanks. It appears that the use of steel items for fabrication of tanks and availment of Cenvat Credit was declared by them in the ER-1 Returns filed by them. In course of scrutiny of ER-1Returns when the Assessing Officers found that the above mentioned Cenvat Credit has been taken they were of the view that the appellant would not be eligible availing credit on steel items as the same appea....
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....se Notice itself, it is clear that the appellant had declared the availment of Cenvat Credit on the steel items for the fabrication of the parts of the capital goods in the ER-1 Returns, that in view of this the appellant cannot be accused of suppressing the relevant facts from the Department and hence neither longer limitation period would be applicable nor penalty under section 11AC would be imposable. He, therefore, pleaded that appellant have strong prima facie case in their favour and hence the requirement of pre-deposit of Cenvat Credit demand, interest and penalty may be waived for hearing of the appeal and recovery thereof may be stayed. 4. Sh. Davinder Singh, learned Jt.CDR, opposed the Stay Application by reiterating the findin....
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....em for fabrication on capital goods/parts of capital goods namely tanks and accordingly the steel items would have to be treated as inputs used in the manufacture of capital goods and would be eligible for Cenvat Credit. It is also seen that para 2 of the Show Cause Notice itself states that on scrutiny of the said returns filed by the appellant, it was revealed that they have taken Cenvat Credit on the structural steel items like Angle, Channel, Beam used by them in manufacturer of parts of capital goods and that Cenvat Credit was availed appears to be inadmissible. In this regard para 2 of the Show Cause Notice is reproduced below:- On scrutiny of the said return filed by the notic....
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....sel 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 products, goods used as paint, or as a packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service. As all the i....