2018 (5) TMI 464

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....3/Commr./M-II/2009 dated 30/11/2009 both passed by Commissioner of Central Excise & Customs, Meerut-II. 2. The issue in these four appeals filed by the appellants-assessee is that the appellants are manufacturer of V.P. sugar and molasses, whether they are entitled to Cenvat credit on various items like Plates, Shape & Section, MS Angles, GP Sheet, HR Coil, CR step, MS Channels, Paints, Welding Electrodes etc. procured and used by the appellant as inputs in manufacture of capital goods, which have been further used in their factory of production for manufacture of Excisable goods. The Appeal No.428/2010 & 430/2010 relates of imposition of personal penalty on Managing Director Shri Gaurav Goyal. 3. The detail of dispute and the period is ....

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....puts. So far welding electrodes used in fabrication of capital goods and for repair and maintenance, it appeared that it is not covered under the definition of inputs. Further, on items like plates, GP sheet/coil, MS Channels/plates, HP Coil/plates, GP sheet, Jointing Sheets, etc, it appeared to Revenue that these goods, neither fall under the specified chapter heading mentioned in Rule-2(a) of Cenvat Credit Rules, 2004 nor do they fall under any other clause of the said Rule, therefore Cenvat credit not admissible. The SCN was adjudicated on contest and the proposed demands confirmed with penalty & also imposed penalty on director. Being aggrieved, the appellants preferred appeals before CESTAT and contested demand & imposition of penaltie....

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....edit. The Counsel for the Appellants further relied on following judgments:- SI. No. Particulars of Judgement 1. Hon'ble CESTAT, Allahabad Final Order No. A/71144/2017-EX[DB] dated 07/09/2017 in the appellants own case. 2. Hon'ble High Court of Madras in the case of Dalmia Cements (Bharat) Ltd. Vs CCE, Chennai reported in 2016 (341) E.L.T. 102 (Mad.) 3. Hon'ble High Court of Chhattisgarh in the case of UOI Vs Associate Cement Co. Ltd. reported in 2016 (341) E.L.T. 175 (Chhtt.) 4. Hon'ble CESTAT judgment in the case of Singhal Enterprises Pvt. Ltd. Vs CCE, Raipur reported in 2016 (341) E.L.T. 372 (Tri.-Del.) 5. Hon'ble CESTAT, Kolkata Final Order No.A/76328/2017-EX[DB] dated 12/07/2017 in the matter of SPS....

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....ad filed Annexure-A to the reply to show cause, wherein they have explained item-wise usage and stated that the same has been used in fabrication of accessory to boiler, evaporator, clarifier and other machinery or its part in the factory of production. The said explanation/ usage duly filed under certificate of the head of Technical Department of the appellants, have not been found to be untrue by the Authorities below. We, further find that the definition of inputs in Rule-2 (k) read with Explanation-2 provides- input includes goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. Thus, in view of the specific provision for allowing Cenvat credit on inputs either used as inputs directly o....