2008 (5) TMI 674

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..... [Order]. -The Appellants are engaged in the manufacture of VP Sugar and Molasses classifiable under Chapter 17 of the Schedule to the Central Excise Tariff Act, 1985. They availed Cenvat credit on capital goods namely MS Plates, HR Sheets, Angles and Channels, etc. The Adjudicating Authority disallowed credit amounting to Rs. 2,41,255/- and imposed penalty of equal amount under Rule 13 of the .....

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..... reiterates the finding of the Commissioner (Appeals). He submits that the Appellants availed credit on the Iron and Steel products used in Civil Construction which is not admissible to them and therefore, they are not liable to pay interest along with penalty. He further submits that the Appellants had wrongly taken Modvat credit and there is contravention of the Rules. So, the Appellants are liab .....

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..... edit. The Tribunal in the case of Bombay Dyeing & Manufacturing Co. Ltd. (Supra) held that assessee reversed the credit without utilizing it in a case of wrong availment of credit and therefore, penalty and interest are not imposable. 5. In view of the above discussion, I find that when the credit has not been utilized and also reversed after receipt of the Adjudication order, imposition of .....

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