Custom, Excise & Service Tax Tribunal
Cce, Meerut Ii vs M/S Indian Iron & Steel Corporation Ltd on 4 September, 2017
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL Old Red Building, 38 M.G. Marg, Civil Lines, Allahabad 211 001 COURT NO. II DATE OF HEARING/DECISION : 04/09/2017. Excise Appeal No. 1886 of 2011 (SM) [Arising out of the Order-in-Appeal No. 71-76/CE/MRT-II/2011 dated 28/03/2011 passed by The Commissioner (Appeals), Customs & Central Excise, Meerut II.] CCE, Meerut II Appellant Versus M/s Indian Iron & Steel Corporation Ltd. Respondent
Appearance Shri Mohd. Altaf, Authorized Representative (DR) for the Appellant.
None for the Respondent.
CORAM: Honble Shri Ashok Jindal, Member (Judicial) Final Order No. __70864/2017 Dated : 04/09/2017 Per. Ashok Jindal :-
Revenue is in appeal against the impugned order wherein the learned Commissioner has dropped the penalty.
2. The brief facts of the case are that the respondent availed Cenvat credit on steel items for fabrication of capital goods during the period December 2007. The appellant availed Cenvat credit on steel items which has been used in fabrication of capital goods. A show cause notice dated 16/03/2009 was issued to the respondent to deny Cenvat credit on steel items on the ground neither the steel items are not capital goods and not inputs Rule 2 (A) and Rule 2 (K) of Cenvat Credit Rules. The matter was adjudicated, the Cenvat credit was denied and demand duty on that steel items alongwith interest and equivalent amount of penalty against the respondent were confirmed. On appeal, the learned Commissioner (Appeals) confirmed the denial of Cenvat credit on steel items alongwith interest but dropped the penalty against the respondent. Aggrieved from the dropping of said penalty, Revenue is in appeal.
3. Heard the learned AR. None appeared for the respondent.
4. Considering the fact that Honble Madras High Court in the case of Dalmia Cement (Bharat) Ltd. vs. CCE, Chennai reported in 2016 (341) E.L.T. 102 (Mad.), held that the steel items on which Cenvat credit has been availed and used for the fabrication of structure/capital goods which are embedded to earth, the assessee is entitled to avail Cenvat credit. In that circumstances I hold that the show cause notice was not required to be issued by invoking extended period of limitation, therefore, the penalty imposed on the respondent is not imposable. In these circumstances I do not find any infirmity with impugned order, the same is upheld, therefore, the appeal filed by the Revenue is dismissed.
(Dictated and pronounced in open court.) (Ashok Jindal) Member (Judicial) PK 2 EX/540 of 2011