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TMI Blog2013 (7) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... cise duty has been paid on such wooden propellers by the manufacturer. It is seen that the appellant has taken the CENVAT Credit of the duty paid under the capital goods. As the definition of the input in CENVAT Credit Rules, 2004 clearly indicate at Explanation (ii) that input includes the goods used in the manufacture of capital goods which are further used in the factory of the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is registered with Central Excise Department and holding Central Excise Registration No.AAACS3407LXM004. In the course of internal audit for the period January 2010 to December, 2010, it was noticed that the appellant had availed CENVAT credit on wooden articles (pattern) being their capital goods falling under chapter 44219030 during the month December, 2010 to the tune of Rs.76,100/- @ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 944 and proposing imposition of penalty on the appellant under Rule 15(2) of CENVAT Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. The said show cause notice was adjudicated vide impugned order, whereby the demand of duty was confirmed along with interest and penalty equivalent to amount of duty was also imposed on appellant. 3. Aggrieved by such an order, the appellant p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it that this item on which the credit has been availed as capital goods and they are not capital goods as the items received by the appellant i.e. wooden propeller are made out of wood and does not fall under the category of capital goods on which the credit can be availed, they are classified under Chapter 44 of Central Excise Act, 1944. 7. On careful consideration of the submissions made by bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant for manufacturing of propellers by casting. 8. I find that both the lower authorities have not appreciated the law. Accordingly, in my view, the decision of this Bench in the case of Meghmani Dyes Intermediates Ltd (supra) will squarely cover the issue. 9. In view of the foregoing, I find that the appellant is eligible to avail CENVAT Credit of the duty paid on such wooden propelle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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