2016 (3) TMI 615

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....credit of tax paid on inputs utilized for fabrication of machineries or capital goods. A show cause notice dated 16/6/10, was issued alleging therein that the appellant had taken Cenvat credit during the month of July, August 2008 and April 2009 on the items like, MS plate, HR coils, and HR sheets and sections, et cetera. The SCN also mentioned that another show cause was issued for the period June 2006 to June 2008 as it appeared that the appellant had wrongly taken Cenvat Credit on iron and steel items including plates, coils, channels, HR plates etc. Accordingly, it was proposed to disallow the Cenvat credit of Rs. 4,75,973/- under Rule 14 of CCR read with proviso to section 11A of the Act with further proposal to appropriate the amount ....

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.... The SCN was adjudicated vide order-in-original dated 28/6/11 whereby the proposed demands were confirmed and appropriated along with interest and further equal amount of penalty Rs. 4,75,973/-was imposed in terms of Rule 15 of CCR read with section 11AC of the Act. Being aggrieved the appellant preferred appeal before ld. Commissioner (Appeals). 2. Learned Commissioner (Appeals) took notice that the biogas generated from sludge in digester tank, was utilised as fuel for running the boiler which is the main source of power to the plant and the distillery. As the revenue have not brought any evidence on record to show that there is removal of goods (Bio-gas) from the factory, he held that there was no scope for coming to the conclusion th....

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....e,2008 and as such in view of the ruling of Honourable Supreme Court in the case of Nizam Sugar factory Vs. Collector of Central Excise : 2006 (197) ELT 465 (SC) wherein it was held that all the relevant facts were in the knowledge of the authority when show cause notice was issued in such case, while issuing 2nd and 3rd show cause notice on similar facts, revenue cannot take the ground of suppression of facts on the part of the assessee. 4. The ld. AR for revenue relies on the impugned order. He further relies on the Division Bench ruling of this Tribunal in the case of Kripa Fabs Pvt. Ltd. Vs. Commr. of Central Excise, Chennai: 2011 (264) ELT 520 (Tri.-Chennai), wherein the matter is of SSI exemption when show cause notice was issued a....