TaxTMI 
TaxTMI 
2025 (3) TMI 841
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....d May 2013 to March 2014, along with applicable interest, as ordered by the adjudicating authority, and has reduced the penalty imposed to Rs.5,000/-. 2. The facts stated briefly are that the appellant are manufacturers of 'steel forgings' falling under tariff item number 73261910 of the first schedule of the Central Excise Tariff Act, 1985. They availed CENVAT credit on inputs, capital goods and input services on payment of duties on the final products cleared. During the course of verification of records for the period May 2013 to March 2014, the departmental officers noticed that the appellant had taken CENVAT credit on certain goods, namely MS Angles, MS Plates, MS Channels, MS Sheets and HR Bars falling under the chapter 72 and 'Wir....
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....lant has made contrary contentions. Therefore, the adjudicating authority disallowed the cenvat credit and ordered for reversal /recovery of the same, ordered recovery of interest and imposed a penalty of Rs. 20,000/. Aggrieved by the said order, the appellant preferred an appeal before Commissioner of Central Excise (Appeals-II), Chennai and the said appellate authority modified the impugned order in appeal as aforementioned. Aggrieved by the impugned order in appeal, the appellant is before this Tribunal. 4. The learned counsel Shri. S. Nishan appeared and argued for the appellant. The learned counsel draws attention to the definition of capital goods as prevailing for the relevant period as stated in the SCN, viz., that as Rule 2 (a) ....
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....at credit taken on the impugned goods used by the appellant in their factory would fall under the definition of capital goods as contented by the appellant. 7. The SCN at para 3, provides the definition of capital goods for the relevant period as under: - " 3. In terms of Rule 2 of Cenvat Credit Rules, 2004, (a) "capital goods" means:- (A) the following goods, namely (1) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.05 grinding wheels and the like, and parts thereof falling under heading 6804 of the First Schedule to the Excise Tariff Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at (i) a....
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....n of capital goods merits acceptance. 9. This tribunal finds that the adjudicating authority has erred in rendering a finding that the appellants had raised contradictory claims. The adjudicating authority has failed to appreciate that the appellants had only claimed that the components, spares and accessories of the goods specified at (i) & (ii) of the definition of capital goods as given at Rule 2 (a) (A), are chapter agnostic and are thus covered under the definition. It was never a contradictory claim as found by the adjudicating authority and such a finding as upheld by the appellate authority, is wholly untenable. The Appellate authority has also merely stated that the goods are prima facie not covered under the definition of capit....
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.... CESTAT, Chennai 2015 (321) ELT 209 (Mad.) and Mangalam cement limited versus CC, Jaipur (1), 2018 (360) ELT 737 (Tri LB), is apposite. The Larger Bench of this Tribunal has in the aforementioned decision in Mangalam Cement, after considering the definition of capital goods held as under: " 5. From the perusal of the above definition of capital goods it makes the position clear that such goods, which fall under Chapters 82, 84, 85 and 90, answer to the definition of capital goods. Further, components, spares and accessories of the goods of above Chapters also qualify for the purpose of definition of capital goods. On reading of the above definition, it reveals that no Chapter of the Central Excise Tariff Act, 1985 (CETA) has been p....