2013 (11) TMI 1142 - AT - Central Excise

Denial of Cenvat credit on Dumpers and their parts Waiver of Pre-deposit - Whether Dumpers are inputs or capital goods Held that - Following Jindal Steel and Power Ltd. 2013 (11) TMI 614 - CESTAT NEW DELHI - complete waiver in respect of JO trucks used in transportation of the raw materials within the factory granted - the complete waiver granted till the disposal stay granted.

Summary

Issues:
- Stay applications seeking waiver of pre-deposit and stay of recovery of duty and penalty confirmed by lower authority.
- Whether credit of duty paid on Dumpers and their parts used in the factory for manufacturing final products is available to the appellant.

Analysis:
1. The case involved two stay applications by M/s. Aditya Cement seeking waiver of pre-deposit and stay of recovery of duty and penalty confirmed by the lower authority. The main issue was whether the appellant could avail credit of duty paid on Dumpers and their parts used in the factory for manufacturing final products.

2. The appellant argued that Dumpers were used in the manufacturing process and should be considered as inputs or capital goods, making them eligible for credit. The appellant relied on a previous case involving Jindal Steel and Power Ltd., where the Tribunal had allowed the stay application for credit availed on JO trucks used for transporting raw materials within the factory. The appellant contended that their case was similar to the Jindal Steel case and should be granted a waiver accordingly.

3. On the other hand, the Revenue contended that Dumpers were classifiable under chapter 87 of the Central Excise Tariff and did not qualify as capital goods or inputs. Therefore, the lower authority was correct in denying the credit of Excise duty paid on Dumpers to the appellants.

4. The judge, after hearing both sides, noted that the Cenvat credit had been denied to the appellants on the grounds that Dumpers were neither inputs nor capital goods. However, the judge observed that in a similar case involving Jindal Steel and Power Ltd., the Tribunal had granted a complete waiver for JO trucks used for transportation within the factory. Based on this precedent, the judge granted a complete waiver to the appellant and ordered a stay of recovery of dues pending the appeal.

This detailed analysis of the judgment highlights the key arguments presented by both parties, the legal interpretation of whether Dumpers qualified for credit, and the judge's decision based on precedent set by a previous case.