TaxTMI 
TaxTMI 
2017 (7) TMI 474
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....visited the appellants and examined the records of their inputs and found that the appellant had taken Cenvat credit on angles, plates, MS angles, MS joists/shapes/sections and channels treating them as their inputs for the period March, 2006 to August, 2006. The statement of the director (Appellant No. 2) was recorded in which he admitted that the Cenvat credit had been taken wrongly and utilized and immediately reversed the Cenvat credit on 31.7.2007 and 8.7.2008. A show cause notice was issued for recovery of irregularly taken credit along wiith interest and proposing imposition of penalty under Section 11AC read with Rule 15 of Cenvat Credit Rules. The matter was adjudicated by the original adjudicating authority who confirmed the deman....
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..... Learned Advocate also relied on another order of the Commissioner (Appeals) dt.27.10.2011 in which the benefit of input credit on plates and sheets used in the fabrication of storage tank within the factory and the welding electrodes used in the manufacture of storage tank had been allowed. 3. Learned AR submits that the appellants director had admitted that the Cenvat credit has been wrongly availed and utilized. He further submitted that the Chartered Engineers certificate has been obtained two years after the credit was taken and reliance on same for co-relation of the goods and invoices and quantification as to the manufacture of capital goods is impossible. When the items claimed as capital goods were already installed at the time o....
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.... the ER-1. In this backdrop, the production of Chartered Engineer certificate issued after two years to co-relate the use and consumption to manufacture of EOT crane and other items appears to be an attempt to justify irregularly used Cenvat credit. From photos presented and explained by the learned Advocate too, it appears that the items have been used in the fabrication of the supporting structures which are not covered under the definition of the capital goods. The case laws relied on by the learned Counsel pertain to the welding electrodes as inputs for repair and maintenance (National Co-operative Sugar Mills Ltd. (supra) and inputs used for fabrication of the capital goods used for R&D purposes (Maruti Suzuki India Ltd.) (supra) and h....
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....le High Court in 2013 (295) ELT 20 (All.) 6. Since the credit was irregularly taken and there is no production of capital goods under Notification No.67/95 dt.16.3.1995 and no declaration was made by the appellant in the ER-1, the penalty has been correctly imposed on the appellant. In this regard, reliance is also placed on the judgement of the Hon'ble Allahabad High Court in the case of Rathi Steels & Power Limited-2015 (321) ELT200 (All.) wherein the Hon'ble High court held as below:- "32. We further find that under Rules, 2004, a burden is cast upon the manufacturer to ensure that Cenvat credit is correctly claimed by them and proper records are maintained in that regard. 33. The assessee, in response to the show cause notice had sta....