2011 (8) TMI 978 - AT - Central Excise

Summary

Issues:
1. Cenvat credit claim for plastic flooring as input.
2. Denial of Cenvat credit claim by authorities.
3. Dismissal of appeal based on lack of evidence supporting the claim.

Analysis:
1. The appeal in question, which is three years old, was disposed of due to the judgment of the Apex Court in the case of Saraswati Sugar Mills. The judgment stated that there was no necessity to keep the appeal pending, leading to its disposal even in the absence of the appellant. The primary issue revolved around the claim of Cenvat credit for plastic flooring as an input, amounting to Rs. 40,850. The appellant failed to provide reasoning or evidence to establish that the plastic flooring was used in the manufacture of capital goods or as components thereof, as required by law.

2. The JCDR explained that the appellant's claim for Cenvat credit on plastic flooring was not substantiated with the necessary proof. The Show Cause Notice (SCN) highlighted that the plastic flooring, falling under a specific heading, was claimed as an input for which the credit was sought. Both the adjudicating authority and the appellate authority denied the claim, emphasizing that the plastic flooring was not integral to the manufacture of capital goods. The appellate authority specifically mentioned that the plastic flooring was used after the final product was ready for dispatch, indicating its ineligibility for Cenvat credit.

3. The authorities below, as per the appellate order, found no merit in the appellant's argument that the plastic flooring should be considered as capital goods. The observations made during the proceedings indicated that the plastic flooring did not serve as an aid in the manufacturing process nor was it an essential requirement for production. Consequently, the appeal was dismissed based on the lack of evidence and reasoning supporting the classification of plastic flooring as capital goods. The penalty was reduced, but the Cenvat credit claim was ultimately disallowed, leading to the dismissal of the appeal.