2009 (8) TMI 933 - AT - Central Excise

Summary

Issues involved: Appeal against credit denial for Tapping Ladle Car; Classification of goods under tariff heading 87.16; Limitation period for issuing show-cause notice.

Appeal against credit denial: The Revenue appealed against the order denying credit for Tapping Ladle Car used for moving molten metal. The Commissioner (Appeals) allowed the appeal on merit and limitation grounds. The Revenue argued that the assessee is responsible for ensuring credit eligibility, and the extended period is applicable as the Tapping Ladle Car was not an accessory of the furnace as claimed in the monthly returns.

Classification under tariff heading 87.16: The Revenue contended that goods in question were classified under heading 87.16, not specified under the definition of capital goods, making credit inadmissible. The respondent countered that they never claimed the Tapping Ladle Car as an accessory of the furnace in the monthly returns, and the show-cause notice issued in 2007 was based on a suppression of facts allegation, which they deemed unsustainable.

Limitation period for show-cause notice: The Tribunal found that the credit for the Tapping Ladle Car was availed in March and April 2005, with the specific mention in the monthly return. As the show-cause notice was issued in August 2007, the allegation of suppression of facts to evade duty payment was deemed unsustainable, leading to the demand being time-barred. The Tribunal disposed of the Revenue's appeal accordingly, citing relevant legal precedents.