2019 (11) TMI 378

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....credit on the duty paid on inputs as well as capital goods. While verifying the records of the appellants, the department noticed that (a) they had wrongly availed Cenvat credit on ineligible inputs during April 2010 and May 2010, (b) availed Cenvat credit irregularly on JCB and cement products under capital goods during the period December 2009 to June 2010, (c) did not pay interest on the irregular Cenvat credit wrongly taken and later reversed by them on iron and steel products viz., MS Plates, MS Angles, MS Channels, MS Beams, etc., falling under Chapter 72 and 73 of the Central Excise Tariff Act, 1985 and (d) further verification of the records of the appellant revealed that they have availed Cenvat credit amounting to Rs. 12,92,374/- ....

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....he appellant submits that they are manufacturers of iron and steel products and that they had availed Cenvat credit on MS Angles, MS Beams, etc., which were used in fabricating their capital goods. It is the case of the department that they are not entitled to the Cenvat credit on these items because they are neither capital goods by themselves nor are inputs. Although they were of the opinion that they are entitled to the Cenvat credit, on insistence of the department they had reversed the same. The show cause notice and the orders of the lower authorities seek to deny the Cenvat credit and appropriate the amounts already paid by them towards the demand. Further, they proposed to charge interest and impose penalties upon them. He would con....

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....arh as reported in 2017 (355) ELT A120 (Chattisgarh) and upheld by the Hon'ble Apex Court as reported in 2018 (360) ELT A125 (SC). As the issue is now settled in favour of the assessee the entire demand must fail on merits itself. Consequently, the demand of interest and imposition of penalty must also fail. He prays that their appeal may be allowed and the impugned order may be set aside. 6. Learned departmental representative reiterates the findings of the lower authorities. 7. I have considered the arguments on both sides and perused the records. The issue involved in this case is eligibility of Cenvat credit on MS Angles, MS Channels, etc., used for fabricating and installing the capital goods. In the case of M/s Sai Samhita Stora....