2015 (11) TMI 356

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....t in respect of M.S. Rod which was used for making tote box which is used for keeping and carrying inputs and finished goods during the course of manufacture in the factory of the appellant. The show cause notice was issued alleging that said M.S. Rod is neither used for manufacturing the finished goods nor fall under definition of input, accordingly it was proposed to demand and recover Cenvat credit of Rs. 3,26,877/-, it was also proposed to impose penalty under Rule 15 of Cenvat Credit Rules, 2004 read with Section 11AC and also recovery of interest under Rule 14 of CCR, 2004 read with Section 11AB. Show cause notice was adjudicated by the Asstt. Commissioner of Central Excise and Customs, Aurangabad vide order-in-original dated 30/6/200....

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....) ELT 847 (Tribunal) referred ELT 227 : 14.07.08 265 STEEL AUTHORITY OF INDIA LTD Vs COMMISSIONER OF C.EX. RAIPUR 2008 (227) ELT 265 (Tribunal-Del) CASES: Hindalco Industries Ltd. Vs. Commissioner 1996 (88) ELT 519 (Tribunal) followed SAIL Vs. Commissioner 2008 (222) ELT 233 (Tribunal) followed Union of India Vs. Hindustan Zinc Ltd. 2007 (214) ELT 510 ELT 224 : 28.04.08 560 GKN SINNER METAL LTD Vs COMMISSIONER OF C.EX. PUNE CASES: Collector Vs. Solaris Chemtech Ltd. 2007 (214) ELT 481 (S.C.) 4. Shri. V.K. Shastri, Ld. Asstt. Commissioner (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. 5. I have carefully considered the submission made by Learned A.R. and perused the record. 6. I find that the a....

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...., Cenvat credit in respect of input used in the manufacture of such exempted capital goods is permissible. As per CCR, 2004 the Cenvat Credit is allowed on the input as per the Rule 2K explanation (2) "input includes goods used in the manufacture of capital goods which are further used in the factory of the manufacture" In view of this provisions in the present case M.S. Rod have been used in the manufacture of the capital goods and the capital goods in the manufacture of the final product, Cenvat credit on M.S. Rod is admissible as input. In the fact of the present case, it is undisputed that the final product manufactured by the appellant is cleared on payment of duty and no exemption was availed, therefore contention of the Ld. Commissio....