9911796707
TMI Blog2017 (6) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for CENVAT credit - appeal allowed - decided in favor of appellant. - E/21156/2014-SM, E/21157/2014-SM - 20859-20860/2017 - Dated:- 9-6-2017 - Shri S.S Garg, Judicial Member Mr. A.S. Monappa, Adv For the Appellant Mr. Mohammad Yusuf, A.R. For the Respondent ORDER Per: S.S. Garg The present appeals have been filed by the appellant company and the Authorized Representative against the two impugned orders dated 26.12.2013 passed by the Commissioner (Appeals) wherein in the case of the company, the appeal was partly allowed and the appellants were held eligible for credit in respect of welding rods and are not eligible to avail CENVAT credit on other items i.e. MS plates MS angles, MS channels and MS sheets. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read with Section 11A, 11AB/11AA of the Central Excise Act, 1944 and imposed equivalent penalty of ₹ 70,890/- on the appellants under rule 15 of the CCR read with Section 11AC of the Act. Aggrieved by the order-in-original, the appellant filed appeal before the Commissioner on the ground that the welding electrodes used for repairing the damaged grooves in the rolls would get deposited/fused in the rolls and becomes a component/part of the rolls and is therefore be eligible for credit as capital goods under rule 2(a)(A)(iii). Further the appellant submitted before the Commissioner (Appeals) that the goods MS plates, MS angles, MS channels and MS sheets were used in the factory to cover the furnace and chimney which was in the producti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eading 8514 of the CETA. The furnace is used to heat the ingots and billets before the same are rolled into finished goods and the furnace is directly used in the manufacture of finished goods. The chimney is part of the furnace as it facilitates exit of smoke from the heating furnace or alternatively the chimney is to be considered as an accessory to the furnace since without the chimney, the smoke generated in the furnace cannot be removed thereby rendering the furnace as unusable. He also submitted that the MS plates, MS angles, MS channels and MS sheets used in the factory to cover the furnace and chimney should also be considered as part of the capital goods i.e. furnace and chimney. He further submitted that there was no suppression o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of penalty under rule 26 is liable to be set aside. In support of this submission, he relied upon the decision in the case of Raghunath International ltd Vs CCE Kanpur [2012(278) ELT 509 (Tri-Del)] wherein the division bench of the Tribunal while setting aside the penalty imposed on the authorized signatory under rule 26 of the Central Excise rules as held in para 7 as under: 7. As regards the penalty under Rule 26 of Central Excise Rules on Shri Rajesh Dixit and Shri Rajesh Agrawal, no evidence has been produced by the Department that they were involved in acquiring possession of or in transporting, removing, selling or purchasing of any excisable goods or in any other manner dealing with excisable goods, which they knew or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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