TaxTMI 
TaxTMI 
2015 (2) TMI 1154
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....e instance of assessee- M/S Dwarikesh Sugar Industries Ltd. under Section 35-G of the Central Excise Rules, 1944 (hereinafter referred to as the "Act, 1944"), following substantial questions of law were formulated by this Court while admitting the appeal vide order dated 21.7.2010, which are required to be adjudicated by this Court: "1. Whether welding electrodes having been admittedly used for hardening the surface of Mill Rollers at different interval and also for hardening the Trace Plate, scrappers for smooth crushing of cane, hence it is "capital goods" being part of the plant and machinery for manufacture of sugar? 2. Whether the Tribunal was not justified in completely over looking the specific details, materials about welding el....
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....Rs. 2,44,446/- and also imposed penalty of Rs. 50,000/-. 7. The appellant-assessee preferred Appeal No. 121/2006, which was rejected by Commissioner (Appeals) vide order dated 30.06.2006, whereafter the assessee came in Appeal No. E/3008 /2006-SM (BR) before Customs, Excise & Service Tax Appellate Tribunal, New Delhi (hereinafter referred to as the "Tribunal"). The Tribunal has dismissed appeal relying on Larger Bench judgment of Tribunal in Jaypee Rewa Plant Vs. CCE, Jaipur, 2003(57) RLT 739, so far as CENVAT Credit is concerned, but set aside penalty and that is how partly allowed appeal vide order dated 11.03.2008. 8. The scheme of MODVAT (Modified Value Added Tax) came to be introduced in India w.e.f. 01.03.1986. Section 37 of Central....
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....period of dispute for which CENVAT Credit has been denied is from October' 2004 to August' 2005. This Court finds that during the relevant period, the matter of CENVAT Credit was governed by Rules, 2004 and the term 'Capital Goods' was defined in Rule 2 (a) as under: "(a) "capital goods" means:- (A) All following goods, namely:- (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 6805, grinding wheels and the like, and parts thereof falling under heading 6804 of the First Schedule of the Excise Tariff Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at (i) and (ii) above; (iv) moulds and dies; (v) refractories and refracto....
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....o items mentioned in 2 (a)(A)(i) and (ii), components, spares and accessories of the goods specified thereunder would also fall within the category of 'capital goods'. Having failed to point out application of any other provision under Rule 2 (a), the stress on the part of Assessee was on the term 'components' under Rule 2 (a)(A) (iii) and it is contended that 'Welding Electrodes', being used for maintenance and repair of machineries and factories, would fall in the category of components, hence would be entitled for CENVAT Credit being 'capital goods'. We find that 'capital goods' as defined under Rule 2(a) of Rules 2004, in substance, are pari-materia with the 'capital goods' specified in Ru....