2018 (1) TMI 295

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....'Scrap Alternator' and 'Scrap Engine' purchased from their sister concern i.e., M/s Sterling Generator Pvt Ltd (100% EOU). The department was of the view that the appellants are not entitled to cenvat credit as the goods, falling under Chapter 72, were not inputs and that the appellant unit did not have melting facility or processing such scrap. Statement of the second appellant Shri Ramesh P Prajapati was recorded on 06.01.2014, who admitted to the facts of availing cenvat credit on scrap. Accordingly, SCN dtd 05.02.2014 was issued and adjudicated vide impugned order wherein the adjudicating authority confirmed the demand for recovery of incorrectly availed cenvat credit amounting to Rs. 4,85,783/- alongwith interest and equal penalty with....

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....dings of the First Appellate Authority are apt. He would submit that First Appellate Authority has correctly stated that if these scrape engines could be repaired by the appellants, the same should have been repaired by their own sister concern and would never have mentioned as scrap. In the absence of any other documentary evidence to show that the scrap engines were in fact repaired, refurbished, reconditioned, denial of Cenvat Credit was correct. 7. On careful consideration of the submissions made, I find that the First Appellate Authority while upholding the Order in Original for denial of Cenvat Credit as recorded the following findings: "It is therefore, clear that had the impugned goods been capable of being reused as inputs for fu....