2005 (1) TMI 724

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....goods, they started filing declarations as required under Rule 57T of CE Rules. The Superintendent, while assessing RT 12s for the months of 1/95 to 8/95, issued Show Cause Notices alleging that certain goods are not capital goods and do not conform to the meaning of capital goods as given in Rule 57Q. Later, on 9.10.1995, during the course of verification of such capital goods put to use in the factory, the Superintendent came across an erection of a Mega Generating Set in the factory of ICL. On enquiry, it was revealed that M/s. Wartsila Diesel India Ltd. (WDIL in short) has contracted to erect and commission 6MW Generating Set. Therefore, on due inspection of the contract, a fresh Show Cause Notice was issued on 4.6.1996 alleging that th....

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....ound from the records supplied by WDIL that the invoices evidenced payment of duty which was collected in the matter by WDIL and as they had not retained the duty with them, therefore, the question of attracting Section 11D does not arise. He also held that he had no territorial jurisdiction over WDIL to decide the matter and hence held that no duty and penalty is leviable and payable by WDIL. He held that ICL are eligible for modvat credit in respect of the goods supplied to them. The Revenue is aggrieved with this order. 3. We have heard learned SDR and the earned Counsel in the matter. 4. The learned SDR reiterated the grounds of appeal in the appeal memo. 5. The earned Counsel pointed out that the department initiated proceedin....