2008 (5) TMI 202

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....ment of Cenvat credit on Steel plates and strips. The appellants are manufacturers of alumina hybrid, calcined alumina, carbon electrode paste, cathode carbon blocks and vanadium sludge. Revenue proceeded against the appellants on the ground that steel plates and strips on which Cenvat credit had been availed by the appellants cannot be considered as accessories to capital goods. The adjudicating authority disallowed Cenvat credit of Rs. 1,74,883/- and Education Cess of Rs. 2,998/- wrongly availed. Further, apart from demanding interest he imposed penalty of Rs.1,77,881/- under Rule 15(2) of the Cenvat Credit Rules, 2002/2004. The Original Authority has given elaborate reasons for denying the credit. In his order, the Original Authority has....

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....ment's case, the credit cannot be allowed. 6. The contention of the Revenue is that in terms of Rule 2 of Cenvat Credit Rules, the capital goods are defined as follows: (i) All goods falling under Chapters 82, 84, 85, 90 and Heading Nos. 6802, 6801.10 of the First Schedule to the Tariff Act. (ii) Pollution control equipment. (iii) Components, spares and accessories of the goods specified in (i) and (ii) above. (iv) Moulds and dies. (v) Refractories and Refractory materials. (vi) Tubes & Pipes and fittings thereof. (vii) Storage tanks. used in the factory of the manufacture of final products but does not include any equipment/appliances used in the office. 6.1 The impugned goods are used for fabrication of tanks....