2006 (9) TMI 333 - AT - Central Excise

Summary

Issues involved:
The disputed demand raised by the Commissioner of Central Excise against the Steel Authority of India (RSP) relates to the denial of Modvat Credit on two counts.

Issue 1: Misplacement of duty paying documents
An amount of Rs. 1,24,55,573.00 is in question due to the misplacement of duty paying documents, specifically the triplicate copy of the bill of entry. The applicant/appellant company failed to inform the Assistant Commissioner about the loss but provided an attested Xerox copy of the bill of entry. The duty-paid nature of the inputs and their receipt into the company's factory are undisputed. The company cites previous Tribunal decisions to support their case, indicating a curable technical omission.

Issue 2: Classification of 'Guide Car' for Cenvat Credit
The second issue pertains to the classification of an item known as 'Guide Car' under sub-heading 8428.90 by the supplier, M/s. Beekay Engineering Corporation. The applicant/appellant company claimed Credit on the capital goods based on the duty paying documents provided by the supplier. The Department argues that the Jurisdictional Central Excise Authorities reclassified the item to Chapter Heading 8603.00, making the Credit inadmissible. The company asserts their lack of awareness regarding the reclassification and maintains that their documents support the original classification of 8428.90, making it eligible for Cenvat Credit. They argue that the 'Guide Car' is an integral part of the 'Coke Oven Battery' machinery system. The case appears to be prima facie favorable to the applicant/appellant company.

In conclusion, the pre-deposit is waived, and Stay is granted pending a final hearing scheduled for 6th November 2006.