2018 (6) TMI 326

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....to the Appellant holding it to have been wrongly availed on Aluminium articles and the recovery thereof along with the interest was ordered with a simultaneous imposition of penalty to the equal amount under Section 11A(C) of Central Excise Act and an additional penalty of Rs. 20,00,000/- upon Noticee No. 2 and of Rs. 10,00,000/- upon Noticee No. 3 in view of Rule 26 of Central Excise Rules was also imposed. 2. The facts relevant for the purpose are that the Appellant's company is engaged in manufacture of Ferro-alloys and synthetic slab and is registered under Central Excise Laws under the jurisdiction of Central Excise range for Raipur having the Registration No. AADCR4431JXM002. They are also availing the credit of duty paid on inputs/r....

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.... from April 2008 to March 2013, the Appellant has availed Cenvat credit on various Aluminium products such as section wires, gold products, sheet rods to be used in the process of manufacture of final product, i.e., Ferro-alloy. It is impressed upon that the Department case is as to why only aluminium rods which is class 99% pure aluminium has been used to the exclusion of other forms of raw materials, such as aluminium wire, ingots, scrap, channel, joist and other ruled products. It is further impressed upon by the Appellant that all other kinds of raw material than aluminium rods have intermittently been used by the Appellant in their manufacturing process. Since the Appellant was an emerging metallurgical unit, they were still in process....

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.... Cenvat credit is availed by the Appellant qua the other raw materials allegedly used as the spent catalyst by them, is concerned. Finally, justifying the order under challenge, Department has prayed for the dismissal of the appeal. 5. After hearing both the parties and perusing the entire records, we are of the opinion that the document as has been relied upon by both the parties is the table of consumption of the spent catalyst in production of Ferro-alloy, as given at Page 225 of the appeal. No doubt, during 2008 and 2009, the quantity of aluminium used is shown as maximum, which is sufficient to hold that during this period, only aluminium rods were used as the spent catalyst. Since the use of the select catalyst as an input for the pr....