2013 (12) TMI 1486 - AT - Central Excise

Summary

Issues involved: Application seeking waiver of pre-deposit of Cenvat credit and penalty imposed under Rule 15 of the Cenvat Credit Rules, 2004.

Summary:

Issue 1: Classification of Cathode and Anode as 'inputs' or 'capital goods'
The Applicant availed Cenvat credit on Pre-baked Anode, Cathode Carbon Block falling under Chapter 85 of the Central Excise Tariff Act, 1985. The contention was whether these items should be considered as 'inputs' or 'capital goods'. The ld. Advocate argued that previous judgments considered these items as 'inputs' even after the new definition of 'Capital Goods'. He also highlighted that in other Commissionerates, these items were treated as 'inputs' allowing Cenvat credit. The Revenue argued that since the remnant of cathode and anode were cleared as 'used carbon blocks' and duty was discharged, they should be treated as 'capital goods'. The Tribunal found the issue debatable, considering the definition of 'capital goods' and 'inputs'. The Applicant was granted total waiver of pre-deposit of dues adjudged, with recovery stayed during the Appeal, based on a strong prima facie case on merits.

End of Summary