2015 (7) TMI 624

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....V Murthy: Appellants had availed Cenvat credit of duty paid on MS Angles, Channels, MS Squares, Beams, Flat Bars, MS Flats etc. used in their factory. Taking a view that credit is not admissible since such angles, channels, squares, beams, plates, etc are not covered by Chapter Heading definition of capital goods, show-cause notice was issued proposing to deny Cenvat credit of Rs. 1,39,698/- al....

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....ts and used in their factory. According to Rule 9(5) of Cenvat Credit Rules, 2004, it is the responsibility of the assessee to maintain records with regard to receipt and issue of the same. It is also the responsibility of the assessee to ensure that credit is taken correctly. The only conclusion that emerges is that proper records have to be maintained. For this proposition, I find that the relia....

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....t the inputs on which Cenvat credit was taken was actually used for manufacture of capital goods, as no goods or sufficient material was made available to satisfy the adjudicating authority." As in the case of Bajaj Hindustan Ltd. (supra), in the present case also the appellants have no evidence or records to show as to which machinery or equipments, these angles, channels, plates etc. have bee....

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....d in the case of Bajaj Hindusthan Ltd. (supra) squarely covered the issue and the appellant has no case on merits. 5. Coming to the penalty, learned A.R. submits that in the case of Bajaj Hindusthan Ltd. (supra), penalty equal to the duty was sustained. In this case, even though suppression / mis-declaration had involved, penalty has been limited to only 25% and this is reasonable and should be....