TaxTMI 
TaxTMI 
2023 (12) TMI 1238
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....ucation Cess and Secondary & Higher Education Cess, along with interest and penalty has been confirmed. In the impugned order, the Ld. Commissioner however dropped the duty demands of Rs. 2,02,66,265, Rs. 4.56 crores and demand of alleged irregularly availed Cenvat credit of Rs. 3451/-, all proposed in the show cause notice. 2. The Appellant, M/s Steel Authority of India Ltd., is a Government of India Undertaking having integrated steel plants at different places in the country. The present appeal is related to Bokaro Steel Plant (BSP) of the Appellant. During the period 1970 to 1980 the Appellant installed in the said factory machineries for carrying out manufacturing activities. Several such old, idle and obsolete machineries in the fact....
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....enalty. Aggrieved against the impugned order, the Appellant has filed this appeal. 4. In their grounds of appeal, the Appellant submits that the Ld. Commissioner has completely failed to appreciate the true terms and scope of Rules 3(5A) and 3(5) of the Cenvat Credit Rules, 2004. In his findings, the Ld. Commissioner has agreed to the fact that no Cenvat credit has been availed in respect of the used /rejected scrap machinery. Inspite of this findings, he has held that in terms of Rule 3(5A) of the Cenvat Credit Rules, duty is payable at the applicable rate on the transaction value of the said goods on their removal as waste and scrap. The Appellant submits that when no Cenvat credit was availed in respect of the said goods, the provisions....
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....Credit Rules, when used/rejected capital goods on which Cenvat credit has not been taken are cleared as waste and scrap. We have gone through the provisions of Rule 3(5) and 3(5A) of the Cenvat Credit Rules. A perusal of these Rules 3(5) and 3(5A) reveal that the expression "the capital goods" available in Rule 3(5A) refers to the capital goods on which Cenvat credit has been taken. We observe that Rule 3(5) provides for a situation where such capital goods are removed "as such" from the factory or premises of the provider of output service. Rule 3(5A) deals with a situation when such capital goods are cleared as "waste and scrap". It is apparent that both the provisions of Rules 3(5) and (5A), are concerned with capital goods on which Cenv....