9911796707
TMI Blog2006 (10) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaged in the manufacture of M.S. Ingots falling under chapter 72 of the CETA, 1985 and they are availing Cenvat Credit. They have been issued a show cause notice by the Joint Commissioner on 9.10.2003 to show cause as to why Cenvat/Modvat credit amounting to ₹ 8,01,011/- availed during the period April, 2000 to August, 2001 on M.S. Rounds/CTD Bars, Sheets/Plates should not be disallowed and the credit of duty of ₹ 1,06,376/- (out of ₹ 8,01,011/- already paid back) should not be appropriated under proper head and why penalty should not be imposed and interest should not be recovered along with personal penalties on the Director and Works Manager. The allegations are based on the following grounds :- (i) that the CTD bar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order in original, he has confirmed the reversal of credit to the extent of ₹ 1,06,376/- while setting the aside the penalty to that extent and dropped the balance amount of ₹ 6,94,635/-. 5. The Commissioner (Appeals) while referring to the definition of the inputs as provided in Rule 2 (g) of Cenvat Credit Rules, 2002 and discrediting the statements of the suppliers since they are not concerned with the manufacturing of M.S. Ingots and lack of technical know-how observed that any input whether it is prime quality or high value, if used into the manufacture of final product whether directly or indirectly and whether contained in the final product or not is eligible for Modvat/Cenvat credit. C.T. Bar/M.S. Round bars are u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 168) ELT 466 (Tri.-LB). 7. The learned JDR, Shri Pramod Kumar has pointed out that the Commissioner (Appeals) has erred in deviating from the finding of the original authority who in turn held about non receipt of the material/inputs into the factory of the assessees as such availment of modvat/cenvat credit is not admissible to the assessees. 8. I have gone through the show cause notice and other records of the case. As a matter of fact, I do not find any allegation in the show cause notice about non receipt of the inputs into the factory of the assessees and availment of modvat credit on such materials. Whatever allegations have been made in the show cause notice, the Commissioner (Appeals) has dealt with each of the allegations by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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