Custom, Excise & Service Tax Tribunal
M/S.Triveni Engg. Indus. Ltd vs Cce, Meerut-I on 15 January, 2008
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, R.K. PURAM, W.B. NO.2, PRINCIPAL BENCH
NEW DELHI, COURT NO. III
Excise Appeals No.896-898 of 2006-SM (BR)
[Arising out of order in appeal No.251-CE/MRT-I/2005 dated 6.12.2005 passed by the Commissioner (Appeals) Central Excise, Meerut-I]
Date of Hearing/ Decision:15.1.2008
For approval and signature:
Hon'ble Mr. P.K. Das, Member (Judicial)
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1. Whether Press Reporters may be allowed to see :
the Order for publication as per Rule 27 of the
CESTAT (Procedure) Rules, 1982.
2. Whether it should be released under Rule 27 of the :
CESTAT (Procedure) Rules, 1982 for publication
in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy :
of the Order?
4. Whether Order is to be circulated to the Departmental :
authorities?
M/s.Triveni Engg. Indus. Ltd. Appellants
[Rep. by Mr. Rajesh Chibber, Advocate]
Vs.
CCE, Meerut-I Respondent
[Rep. by Mr. S. Gautam, SDR) CORAM: Mr. P.K. Das, Member (Judicial) O R D E R NO../Dated:15.1.2008 Per P.K. Das:
The appellant filed this application for denial of credit on Welding Electrodes/M.S. Plates, Steel, Section, Bars, Gets, Flats, Welding Rod, Shrink Komp., etc.
2. After hearing both the sides and on perusal of the records, I find that the Larger Bench of the Tribunal in the case of Jaypee Rewa Plant Vs. CCE 2003 (159) ELT 553 (T-LB) disallowed the credit on welding electrodes. Further, the Tribunal in the case of J.K. Cement Vs. CCE reported in 2007 (211) ELT 235 (T-D), after considering the decision of the Honble Rajasthan High Court, held that Welding Electrodes is not eligible for Cenvat credit. Accordingly, the denial of credit on Welding Electrodes is upheld.
3. Regarding the denial of credit on M.S. Plates, Steel, Section, Bars, Loctite, Shrink Komp., etc. the ld. Advocate submits that the Honble Rajasthan High Court in the case of Union of India Vs. Hindustan Zinc ltd. reported in 2007 (214) ELT 510 (Rajasthan) allowed credit on M.S./S.S. plates used in workshop meant for repair and maintenance of machinery, which was upheld by the Honble Supreme Court as reported in 2007 (214) ELT A-115. It is seen from the order of the Commissioner (Appeals) that the appellants did not disclose the specific use of these items nor submitted any corroborative evidence, where such goods were used. The ld. Advocate submits that it is revealed from the adjudication order that the appellant stated the use of these items. I find that there is a dispute on use of these items, which requires to be verified by the adjudicating authority.
4. So, the denial of credit on welding electrodes is upheld and regarding the other items, matter is remanded back to the adjudicating authority to examine the use of these items and case laws and to pass order. I find that the issue involved is the interpretation of the provisions of the law in respect of availment of credit and, therefore, penalty is not warranted. Accordingly, the penalty is set aside and the order is modified.
Order dictated & pronounced in open court on 15.1.2008.
` ( P.K. Das ) Member (Judicial) Ckp.