9911796707
TMI Blog2013 (5) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... ow cause notice dated 29.03.2007 to the respondent for denying cenvat credit amounting to Rs.11,67,441/- in respect of various items, its recovery alongwith recovery of interest and imposition of penalty on the appellant. The show cause notice was adjudicated by the Joint Commissioner vide order-in-appeal dated 14.07.2008 by which the Joint Commissioner confirmed the cenvat credit demand alongwith interest thereon and imposed penalty of equal amount on the appellant. On appeal being filed to the Commissioner (Appeals), the same was partly allowed vide order-in-appeal dated 31.12.2008. The Commissioner (Appeals) upheld the cenvat credit demand of only Rs. 5,89,550/- in respect of welding electrodes, paint, sulphur, polythene sheet, G.C. shee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of the sugar and would be eligible for credit, and that items of machinery are covered by definition of capital goods. She, therefore, pleaded that except for twill bags and G.C. sheet the impugned order in respect of other items is not correct. 3. Ms. Shweta Bector, ld. DR defended the impugned order and reiterated the finding of the Commissioner in it. 4. I have considered the submissions from both the sides and perused the record. 5. As regards G.C. Sheets and twill bags, the same have been used for repair work of the factory building and godown and hence would not be eligible for cenvat credit. Even the appellant are not contesting the denial of cenvat credit amounting to Rs. 71,376/- in respect of these items. In vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssary for smooth functioning of the boiler. Since with smooth functioning of the boiler, manufacturing is not feasible keeping in view the ratio of Hon'ble Calcutta High Court in the case of Singh Alloys & Steel Ltd. vs. Asstt. Collector of Central Excise reported in 1993 (66) ELT 594 (Cal.) cenvat credit in respect of boiler chemical has to be allowed. 9. As regards the eligibility of polythene sheets for cenvat credit, the use of this item is to protect the sugar from moisture. The sugar absorbs moisture from the air and moist sugar being not marketable, has to be reprocessed. To avoid reprocessing, the sugar bags are covered by polythene bags. Since the use of polythene sheets is after completion of manufacture of sugar, I am of the vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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