2009 (1) TMI 578 - AT - Central Excise

Summary

Issues:
1. Disallowance of Cenvat credit on capital goods due to belated filing of declarations.
2. Denial of benefits on certain items considered not to be capital goods.

Analysis:
1. The first issue pertains to the disallowance of Cenvat credit on capital goods due to delayed filing of declarations. The appellant argued that the delay should be condoned based on the judgment of the Hon'ble High Court and the Tribunal's decision in a previous case. The appellant cited Circular No. 441/7/99-CX and contended that the amended rule should apply to pending cases. The Tribunal, after considering the arguments and the relevant legal provisions, concluded that the appellant is entitled to relief based on the circular and the cited decisions. Therefore, the relief was granted to the appellant regarding the disallowance of Cenvat credit.

2. The second issue revolves around the denial of benefits on certain items considered not to be capital goods. The appellant relied on the judgment of the Apex Court and argued that since there was no contrary finding by the Revenue that the goods were not used for manufacturing, the benefits cannot be denied. The Tribunal examined Rule 57Q and noted that the benefit is granted to specified industries listed in the annexure under that rule, which includes the appellant's industry. Therefore, following the Apex Court's decision and in the absence of any adverse finding by the department, the appellant was deemed entitled to the benefit. Consequently, the appeal was allowed on both counts, and the relief denied by the Commissioner (Appeals) was reversed, ensuring appropriate relief for the appellant concerning duty, penalty, and interest on the mentioned issues.