9911796707
TMI Blog2006 (9) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... Captive Power Plant and was to use inter alia the power for own captive consumption as well as sale to M/s Nilachal Ispat Nagam (NINL for short) a sister unit of the parent body i.e. KMCL. 2.On 12-1-98, they applied for registration, as a manufacturer, under Rule 174 of the erstwhile Central Excise Rules, 1944 along with the ground plant of the factory showing the coke oven plant, to manufacture inter alia the following excisable goods falling under Chapter 27 and 31 of the CETA, 1985 : Names of Final Products Tariff Heading 1. Metallurgical Coke 2704.00 2. Nut coke -do- 3. Pearl Coke -do- 4. Coke Breeze -do- 5. Coke Dust -do- 6. Crude Tar 2706 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth KMCL and NINL. 6.In the present case, the application for registration filed on 12-1-1998 was disposed of by the Range Superintendent indicating therein the names of various final products to be manufactured by the appellant, even though the Coke Oven Plant and the Power Plant were existing within the premises of NINL. However, the Superintendent had deleted the Captive Power Plant portion from the Ground plan, without indicating any reasons and without disputing the basic fact that the Power Plant installed with a Capital Investment of Rs. 480 crores belong to the appellant and that the Power generated in the said plant is meant for use by the appellant in its own Coke Oven Plant in the manufacture of various final products as menti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how the Cenvat credit was taken when the Power Plant has not been registered. 13-7-2001 The appellant clarified the position, requesting the superintendent to modify the Ground plan. 16-7-2001 Summons issued by the Superintendent to the Manager (Commercial) of the appellant company to give statements consequent upon the appellant availing Cenvat credit for the period March to June 2001, in respect of capital goods, installed in the Power Plant. 25-7-2001 Statement was recorded from the Manager (Commercial) of the appellant company clarifying the position in details and reiterating its stand in support of admissibility of credit 28-11-2001 Another summon was issued by the Superintendent to the Manager (Commercial) to give evidence i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Credit Rules, 2001 respectively and Rule 57AC/Rule 4 of the Rules by the appellant in having availed the said credit of duty paid on capital goods inputs, during the period March and July 2001. 9.The Notice was contested. However, the Ld. Commissioner, disallowed the credit and imposed a penalty of Rs 1.00 lakh in terms of Rule 173Q of the Central Excise Rules 1944 and Rule 13 of the Cenvat Credit Rules, 2001 on the following grounds : (a) that as per the definition of terms 'Capital goods' and 'inputs' given in Rule 57AA of the Rules/Rule 2 of Cenvat Credit Rules, 2001 and as per stipulation in Rule 57AC/Rule 4 of Rules ibid, to be eligible for availment of Modvat/Cenvat credit, the inputs and capital goods should be : (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We find therefore no reasons to uphold the order of the Commissioner to deny the capital goods credit. 11.That the power generated, in the power plant of KMCL, is meant for use by NINL, would not disentitle the credit, since power cannot be stored. It has to be rolled out and gainfully utilized. Rolling out of power is a technological necessity. 12.In this view of the matter, while granting the credit eligibility on capital goods, we find that the credit eligibility on inputs, which was not pressed by the Ld. Advocate, before us, therefore we arrive at no findings as regards the eligibility of credit on inputs i.e. goods other than capital goods and would allow this appeal, granting the capital goods credit and holding that the inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
