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TMI Blog2013 (8) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... chinery to the appellant and also the payment of amount equal to the Cenvat credit availed by issue of invoices, it was not known as to whether the availment of Cenvat credit by the appellant on the basis of invoices issued by AIL and CIAL was specifically intimated to the department. Appellant directed to to deposit an amount of Rs.6 Crores - stay granted partly. - E/3528 of 2010 - - - Dated:- 29-5-2012 - Ajit Bharihoke And Rakesh Kumar, JJ. Appellant Rep by: Shri B.L. Narsimahan, Adv. Respondent Rep by: Shri Sunil Kumar, AR Per: Rakesh Kumar: The appellants are manufacturers of Sponge Iron, Pig Iron, and Billets chargeable to central excise duty under chapter 72 of the Central Excise Tariff. They availed Cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 2004 read with Section 11AC of the Central Excise Act, 1944. 1.1 The main objection of the department to the availment of this capital goods Cenvat credit by the appellant was that in terms of the Rule 4(3) of the Cenvat Credit Rules, 2004, the appellant could take the capital goods Cenvat credit only in respect of the lease of plant and machinery from a Finance Company either on loan basis or under hire purchase agreement while in this case, the capital goods, in question, have been taken on lease from AIL and CIAL which are not finance companies. Another objection of the department was that a substantial quantity of credit has been taken in respect of structural steel items of Chapter 72 and 73 used for making structures fixed to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Officers under letters each dated 11.12.2006 and not only this, the appellant also had informed the Commissioner about taking over the plant machinery of AIL and CIAL on lease, that the appellant after taking over the plant and machinery of AIL and CIAL on lease, had also written to the Commissioner for granting permission to operate their factory located in separate premises under one common central excise registration and this permission had also been granted, that in this background, the appellant cannot be accused of having suppressed any information from the department and hence, longer limitation period under proviso to Section 11 A(1) is not applicable for recovery of allegedly wrongly taken capital goods Cenvat cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uy the property taken on lease. He also pleaded that the appellant had not disclosed to the department that they had availed Cenvat credit of the central excise duty paid on the capital goods of the AIL and CIAL, which they had taken on lease and hence, the extended period under proviso to Section 11 A(1) has been correctly invoked and declaration under Rule 15(2) read with Section 11A(1) has been imposed. He, therefore, pleaded that this is not a case for waiver. 5. We have carefully considered the submissions from both the sides and perused the records. 6. The main issue is regarding correctness of the capital goods Cenvat credit taken by the appellant in respect of the capital goods of the plants of AIL and CIAL taken on lease by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not permit the availment of Cenvat credit in this case, the same had been enjoyed by the appellant for more than one year and in any case the appellant would be liable to pay interest on the same. Besides this, there is also dispute about the quantity of structural steel items used in fixed to earth and supporting structures for machinery, which, in any case, would not be eligible for Cenvat credit. 9. In view of the above, this is not a case for total waiver. The appellant are directed to deposit an amount of Rs.6 Crores (Six Crores) within a period of 8 weeks from the date of this order. On deposit of this amount within the stipulated period, the requirement of pre-deposit of balance amount of Cenvat credit demand, interest and pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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