TaxTMI 
TaxTMI 
2019 (12) TMI 787
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....nuary 2011 alleging irregular availment of Cenvat Credit against grinding wheel used for the finishing of their final products. It is the case of the Department that the grinding wheels do not qualify as input. The same view was carried forward by the Adjudicating Authority and he confirmed the demand of duty along with applicable interest and also imposed penalty of equal amount under Rule 15 (2) of the Cenvat Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. On appeal, the Ld. Commissioner (Appeals) upheld the Adjudication Order and rejected the appeal. Hence, the present appeal before the Tribunal. 3. The Ld. Consultant appearing on behalf of the appellants submits that the grinding wheels are very much part of t....
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....nd countervailing duty paid on inputs, used in the production of final products mentioned in 37 Chapters of the Central Excise Tariff Act. The real question for this Court to decide is as to whether grinding wheels are to be considered as input within the meaning of Rule-57A and are entitled to Modvat credit. Similar question arose before the Full Bench of the New Delhi Tribunal in the case of Collector of Central Excise, Bolpur v. Durgapur Cement Works (supra) wherein it is held that, Ball Mill is the machinery used for manufacture of Cement. Ball Mill can of course be switched on without Steel Balls but it cannot perform the process of grinding without using Steel Balls on the machine. Steel balls are most essential for the process. One o....
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....e conducted. The copper wire was, therefore, held as input as contemplated in Rule-57A of the Central Excise Rules, 1944. 11. In the case of Andhra Pradesh Paper Mills Ltd. v. Collector of Central Excise, reported in 1990 (50) E.L.T. 252 (Tribunal), it is held that for the items to pass the test of eligibility to the benefit of Modvat credit will be such that they participate in the process of manufacture without which the end product cannot be produced. In that case, the chemicals were used for the purpose of softening of water; the same were considered to be a process which was for the manufacture of paper and softening of water is a requirement for the manufacture of paper. Soda Ash and Alflock power used in this process are eligible ....