9911796707
TMI Blog2016 (12) TMI 1463X X X X Extracts X X X X X X X X Extracts X X X X ..... , erection etc. were done pursuant to this expansion works. On verification of records, it was observed by the Department that appellants have taken CENVAT credit on MS items under the category of capital goods which is not admissible. A show-cause notice was issued alleging irregular availment of CE NVAT credit to the tune of Rs. 29,88,775/- proposing to recover the same along with interest and proposing to impose equal amount of penalty. The appellants reversed the disputed credit of Rs. 29,88,775/-. After due process of law, the original authority confirmed the demand of irregularly availed credit along with interest and imposed equal amount of penalty. The appellants filed appeal before the Commissioner(Appeals) who upheld the disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that an amount of Rs. 18,00,168/- is availed by the appellant for fabrication of capital goods/parts / components and therefore is eligible for credit. However, the learned counsel fairly conceded that an amount of Rs. 11,88,607/- will not be eligible as the same were used by the works contractor for temporary structure, shed etc. during the time of carrying out the works. That these temporary structures were removed and dismantled after the completion of work. That therefore the credit to the tune of Rs. 11,88,607/- will not be eligible for credit. He also argued that the appellant having reversed the entire alleged credit prior to utilisation the appellant is not liable to pay interest even on this admitted amount of Rs. 11,88,607/-. Fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007 to February 2008. The invoices pertain to the period prior to 07/07/2009 on which date the explanation was introduced to the definition of inputs which restricted the use of MS items. The learned counsel has submitted that an amount of Rs. 18,00,168/- has been used for manufacture of capital goods/ parts / components thereof. On perusal of records, it is seen that the said amount has been utilised for pre-heater, staircase, coal mill building, platforms, silo, coal mill platform etc. In para 1.3 to 1.5, the original authority has discussed with regard to use of MS items. It is seen from these analysis that the entire MS items are not used for civil construction. So also, the analysis as well as the annexure to the show-cause notice al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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