2014 (8) TMI 14

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....of the central excise duty paid on certain capital goods and service tax on input services which were received prior to the date of obtaining central excise registration i.e. 22.08.2007. Revenue authorities were of the view that as the appellant was not registered with the central excise department under Rule 9 of the Central Excise Rules, 2002, they were not eligible to avail the Cenvat Credit of duty paid on capital goods and service tax paid on input services. Coming to such a conclusion, show cause notices were issued to the appellant. The adjudicating authority after following due process of law confirmed the demands alongwith interest and penalties. 3. Ld. Counsel while assailing the impugned order would draw our attention to the f....

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....red the submissions made at length by both sides and perused the records. 6. The issue involved in these two appeals is very short, in as much as whether the assessee appellant herein is eligible to avail the Cenvat Credit of the duty paid on capital goods and service tax paid on input services which were used / consumed for the construction of the factory or otherwise. 7. Undisputed facts are appellants are manufacturing excisable goods and are discharging appropriate central excise duty for which purpose they setup a new plant at the Silvasa and prior to setting up of the new plant he procured capital goods and input services for erection, installation and commissioning of these capital goods. 8. Adjudicating authority has come t....

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....ter taking the registration certificate. We also find that there is no dispute as to the fact that the Cenvat Credit on the items like capital goods and input services is not denied for any other reason and appellant assessee is eligible for availment of such credit. In our view, such an order which denies Cenvat Credit to the appellant on a very very technical ground is unsustainable and needs to be set aside. 10. We are fortified in our view by the judgment of the Hon'ble High Court of Karnataka in the case of mPortal India Wireless Solutions Pvt. Ltd. Vs. CCE, Bangalore (supra). We reproduce the relevant paragraph nos. 4, 5, 6 and 7 as under:                4. Th....