2024 (9) TMI 107

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....goods, along with interest, the demand of interest on suo motu reversal by the appellant of CENVAT Credit of Rs.7,52,60,823/- when they were having sufficient balance in their CENVAT Credit Account and imposition of penalty. 2. The facts of the case are that the appellant is an integrated steel plant engaged in the manufacture of various iron and steel products falling under Chapters 72 & 73 of the First Schedule to the Central Excise Tariff Act, 1985. The appellant avails CENVAT Credit of duty paid on various inputs and capital goods used in or in relation to the manufacture of dutiable final goods in terms of the CENVAT Credit Rules, 2004. 2.1. During the course of audit, the Revenue objected to the eligibility of CENVAT Credit avai....

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....The appellant contested the Show Cause Notice and thereafter, adjudication took place, wherein vide the impugned order the demand has been confirmed against the appellant, of Rs.9,10,30,038/-, along with applicable interest, and penalty of Rs.4,55,15,019/- was also imposed. 4.1. Against the said order, the appellant is before us. 5. The Ld. Counsel appearing on behalf of the appellant submit that the CENVAT Credit on components, spares and accessories of capital goods were availed by them in terms of Rule 2(a)(iii) of the CENVAT Credit Rules, 2004 as "capital goods", which includes components, spares and accessories of the goods specified at (i) and (ii) of the said definition; that as per the list of capital goods on which credit has....

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....actory of manufacture and thus they can be classified as 'input'; therefore, CENVAT Credit cannot be denied. To support this contention, the appellant relied on the decision in the cases of: - (i) Tata Motors Ltd. v. Commissioner of C.Ex., Jamshedpur [Final Order No. 75016 of 2024 dated 09.01.2024 in Excise Appeal No. 953 of 2011 (CESTAT, Kol.)] (ii) Commissioner of Cus. & C.Ex., Meerut-I v. Modi Rubber Ltd. [2000 (119) E.L.T. 197 (Tri. - LB)] (iii) Raymond Ltd. v. Commissioner of C.Ex., Bhopal [2014 (300) E.L.T. 317 (Tri. - Del.)] 5.3. It is further submitted that CENVAT Credit has been sought to be denied on welding electrodes which were used by the appellant in the manufacturing process and thus, CENVAT Cred....

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....the Revenue supported the impugned order. 7. Heard the parties and considered their submissions. 8. We find that in this case, CENVAT Credit has been sought to be denied to the appellant on components, spares and accessories of capital goods. Admittedly, the clarification issued Vide Circular No. 276/110/96-TRU dated 02.12.1996 is self-explanatory, which clarifies that: - "3. .... .... As such, scope of this entry is not restricted only to the components, spares and accessories falling under Chapters 82, 84, 85 or 90 but covers all components, spares and accessories of the specified goods irrespective of their classification." 8.1. Therefore, all the components and parts mentioned hereinabove fall under the cat....