TaxTMI 
TaxTMI 
2023 (6) TMI 448
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....gles, Channels, Beams and joists on payment of duty and availed the credit. They also purchased Welding Electrodes, MIG Wires and certain other things required for the manufacture of the machines and capital goods and availed Cenvat credit on the same. On 28/01/2009, a stock verification was conducted at the Appellant's factory by the Anti-Evasion Unit of Haldia commissionerate and they found a shortage of 189.50 M.T of pig Iron in comparison to the statutory records. Some other discrepancies were also noticed during the verification. 3. The Appellants were issued with a show- cause-cum-Demand Notice under C.No V(12)3/HAL/AE/Ramsarup/2009 dated 2.9.10 asking them to show-cause as to why (i) Central Excise duty amounting to Rs. 3,80,611/-....
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.... was irregularly availed and utilized by the appellants on the Angles, Channels, Beams, Joists etc. He also charged interest and imposed penalty equivalent to the credit disallowed under Rule 15(2) of CENVAT Credit Rules 2004 read with section 11 AC of the Central Excise Act, 1944. (iii) Disallowed an amount of Rs.33,63,796.67, being the credit taken on welding Electrodes and MIG wires. He also charged interest and imposed a penalty equivalent to the credit disallowed. (iv) Disallowed an amount of RS 23670.68 availed on 73.66 M.T of Iron ore Fines which were not used in the manufacture of final products. He also charged interest and imposed a penalty of equivalent amount. 5. Aggrieved against the impugned order 30/03/2012 passed by ....
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....contention the Appellant cited the following decisions: (i) Supreme labour industries reported in 2011(273) ELT 301 (Tri-Mum), (ii) Continental Foundation Jt. reported in 2007 (216) ELT 177(S.C), (iii) Padmini products reported in 1989(43) ELT 195(S.C) (iv) Cosmic Dye Chemical reported in 1995(75)ELT 721(S.C), (v) Nestle India Ltd. reported in 2009(235) ELT 577(S.C) (5) The said items of iron and steel products are the inputs used in the manufacture of capital goods and the said capital goods were in turn use in the manufacture of their final products. The said goods were also used in the pollution control system. The structure and effluent system are taken together will constitute a unit of pollution control system. There....
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....ortages. Since there was no proper explanation for the shortages, we uphold the penalty imposed under section 11 AC of the Central Excise Act,1944. 8.2 The impugned order disallowed an amount of Rs.5,82,44,793.93 that was irregularly availed and utilized by the appellant on the Angles, Channels, Beams, Joists etc. We observe that the said items of iron and steel products were the inputs used in the manufacture of capital goods and the said capital goods were in turn used in the manufacture of their final products. The said goods were also used in the pollution control system. The structure and effluent system are taken together will constitute a unit of pollution control system. 8.3 As per Rule 2(k) of Cenvat Credit Rules, 2002, Input inc....
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....Cements Ltd., and Delhi Tribunal in Birla Jute & Industries Ltd., which have been, subsequently, affirmed by the Supreme Court, we allow both the appeals, set aside the impugned orders and answer the substantial question of law in favour of the appellant-assessee and hold that welding electrodes used in repairs and maintenance of plant and machinery are inputs as defined under Rule 2(g) of the Cenvat Credit Rules, 2002 and thus, entitled for Cenvat credit. In view of the above discussion, we hold that the Appellant are eligible for the credit of Rs33,63,796.67 on the welding Electrodes and MIG Wires used in repair and maintenance of machineries, as inputs' under Rule 2(k) of the CENVAT Credit Rules, 2004. 8.5 The impugned order disallowe....