TaxTMI 
TaxTMI 
2025 (3) TMI 841
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....cable 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 'Wire mesh cage' falling under chapter 73 of the....
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.... 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) (A) (iii) 2(a) "capital goods" means - (A) t....
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....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) and (ii); (iv) moulds and dies, jigs and fixtures, (v) refractories and refractory materials, (vi) tubes and pipes and fittings thereof, ....
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....hority 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 capital goods without giving any reasons. The appellate authority has further stated that the appellant has not put forth any conclusive evidence that the goods have been used as components in the machinery ....