2016 (2) TMI 1028

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..... below agreed to impose penalty on the appellant by invoking extended period of limitation without alleging the intention of the appellant to avail Cenvat credit - This is factually contrary to the facts of the case and grounds taken by the appellant in the appeal before the ld. Commissioner (A). I find that the appellant has taken Cenvat credit on the higher education cess of duty paid by them, .....

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..... l goods. The appellant has also availed Cenvat credit on steel items like joints/angles/channels as capital goods. On being pointed out by the audit conducted in June, 2009, wherein discrepancies were brought to the notice of the appellant, the appellant reversed the amount of Cenvat credit in dispute along with interest. Later on, a show cause notice was issued to the appellant on 3-9-2009 for ap .....

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..... t but in subsequent year, they are entitled to take Cenvat credit on the capital goods. Therefore, Cenvat credit on capital goods cannot be denied. It is also submitted that the Cenvat credit availed by the appellant on joints/angles/channels were used in manufacture of parts of capital goods assemblies like acid tank. Therefore, they are entitled to avail Cenvat credit. He further submits that in .....

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..... he authorities below agreed to impose penalty on the appellant by invoking extended period of limitation without alleging the intention of the appellant to avail Cenvat credit. The appellant has challenged the issue before the lower authorities for denial of Cenvat credit but without considering the merits, both the lower authorities has presumed that appellant is contesting only penalty imposed. .....

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..... in acid tank therefore, they are entitled to avail Cenvat credit as per Rule 2(a) of the Cenvat Credit Rules, 2004. In the circumstances, I hold that appellant has correctly taken the Cenvat credit, therefore, no demand is sustainable against the appellant. Consequently, whatever amount paid by the appellant is required to be refunded to the appellant. As duty is not required to be paid by the ap .....

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