2008 (10) TMI 225

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....s. 4. The appellants purchased new machinery for the manufacture of polyethylene flexible packing materials by a continuous process. The cost of the machinery is about Rs. 12 crores. Prior to the purchase of the machinery the appellants were getting power from the common feeder line supplying power to the other industries. The load was of the feeder of 400 KV. However, the new machinery required more power and there was a technical requirement of installing a separate feeder line. Consequently, the appellants approached the BESCOM who sanctioned additional power of 1000 KVA. For getting the power a dedicated line was very necessary as seen from the letter dated 25-9-2006 produced by the appellant from BESCOM. In connection with the insta....

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....order confirmed the demand of Rs. 1,33,004/- along with the education cess under proviso to Section 11A of the Central Excise Act. Interest under Section 11AB was demanded. Mandatory penalty under Section 11AC was imposed. The appellants approached the Commissioner (Appeals). The Commissioner (Appeals) passed the impugned order upholding the Order-in-Original. In both the Original order and the impugned Order-in-Appeal reliance was placed on the decision of the Mumbai Bench in the case of National Organic Chemicals v. CCE, Belapur - 2004 (172) E.L.T. 366 (Tri.-Mumbai) wherein the credit was taken in respect of electric cables used for an express feeder line from MSEB, Mahape sub-station to appellants RCD plant on the ground that the assesse....