2025 (3) TMI 677

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....chapter 73 of the 1st Schedule to the Central Excise Tariff Act, 1985. On the basis of investigation conducted by the officers of Headquarters preventive Unit, Chennai-4 Commissionerate, a Show Cause Notice dated 02.06.2011 was issued to the Appellant demanding an amount of Rs.9,94,857/-being the excise duty ( inclusive of Education Cess and Secondary & Higher Education Cess) payable on the clearance of Zinc Scrap and the Structural Grills made without payment of duty, during the period from May 2006 to August 2010. The notice also demanded an amount of Rs.1,02,358/- being the Cenvat Credit taken on the inputs which were cleared 'as such' by the appellant, without reversal of the credit availed. On adjudication, the Ld. Adjudicating Authori....

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....at they were awarded a contract by the Tamil Nadu Government for the construction of the State Assembly and the said service is eligible for exemption under Commercial or Industrial construction Services under the Finance Act, 1994. Accordingly, the appellant submits that this demand confirmed is not sustainable. 3.2. Regarding demand of an amount of Rs.1,02,358/- for the non-reversal of Cenvat crdit availed inputs which were cleared 'as such' on 27.11.2009, the appellant submits that the non-reversal was due to change in personnel in the company due to the amalgamation of the Appellants with M/s. Crown Fabricators (P) Ltd. 3.3. Regarding the invocation of larger period, the appellants submits that they have not suppressed any informa....

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.... of Rs.8,25,921/- for clearance of zinc scrap ii) Excise duty of Rs.1,68,936/- for clearance of structural grills iii) Demand of Rs.1,02,358/- for the non-reversal of Cenvat availed inputs cleared (as such). 6.1. Regarding the demand of Rs.8,25,921/- confirmed in the impugned order, I find that the appellant has purchased zinc ingots for the manufacture of their final product namely galvanized steel structural. These zinc ingots were used for the purpose of galvanization and the appellant has availed Cenvat credit on the zinc ingots. The appellant has cleared the final product namely galvanized steel structure on payment of duty. However, they have not paid the Excise Duty on the zinc scarp emerged during the course of ....

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....ovided under Commercial or Industrial construction Services in the Finance Act, 1994. However, I find that the appellant has cleared the steel structural grill to their own Fabrication Division under a delivery challan without payment of duty. Thus, I find that the appellant is liable to pay duty for the clearance to the structural grills made to their fabrication division. Accordingly, I hold that the Lower Authorities have rightly confirmed the demand of Rs.1,68,936/- on the clearance of steel structural. 6.3. Regarding the demand of Rs.1,02,358/- confirmed in the impugned order, I find that the appellant has cleared inputs' as such' without reversal of the Cenvat credit availed on the same, on 27.11.2009. The appellant has given the e....