2020 (1) TMI 486

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....f CETA, 1985; during the period April 2003 to September 2010 the appellants availed Cenvat credit on various items that is MS Angles, channels, flats, beam, CR coils, HR sheets, welding electrodes etc. as input or capital goods. A total of 9 show cause notices were issued to the appellants seeking to deny Cenvat credit as the department felt that the items did not appear to be eligible as inputs or capital goods under Rule 2 (k) and Rule 2 (a)(A) of Cenvat Credit Rules, 2004 and to impose penalties under Rule 13 of Cenvat Credit Rules 2002 / Rule 15 of Cenvat Credit Rules 2015. The show cause notice was adjudicated by the Commissioner vide Order in Original CCE/BBSR-II/No.25 to 33/Commissioner/2012 dated 29.03.2012. Learned Commissioner dis....

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....e capital goods/inputs under dispute was utilised for the purpose of manufacture of capital goods used / deployed in the manufacture of final products. 3. Learned AR for the department reiterates the findings of OIA and OIO. We find that in the case of Ambuja Cements Eastern Ltd. 2010 (256) E.L.T. 690 (Chattisgarh) electrodes used in repairs/maintenance of plants and machinery was held to be eligible for credit. Similarly in the case of Rajasthan Spinning and Weaving Mills Ltd. it was held that steel plates, MS Channels, used in fabrication of Chimney for Diesel generating set are admissible for credit. Hon'ble High Court of Chattisgarh in the case of Associated Cement Co.Ltd. 2016(341) E.L.T. 175 (Chattisgarh) held that MS Plates, Chann....

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....ellant to prove to the satisfaction of the proper officer that such inputs/capital goods have been purchased and utilised in the factory. In the absence of such records credit cannot be given just on the claim of the appellants. As per the records made available before us, the Bench is not in a position to arrive at the fact as to whether the appellant have produced any record of receipt and usage of the said inputs/capital goods in their factory. However, the appellants have a strong case on merits. Therefore we find that the issue requires to go back to the original Authority to allow credit, in view of the discussions above, after going through records/returns that may be submitted by the appellants. The Original Authority shall allow su....