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TMI Blog2017 (7) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Chartered Engineer certificate issued after two years to co-relate the use and consumption to manufacture of EOT crane and other items appears to be an attempt to justify irregularly used Cenvat credit - the case of Bajaj Hindustan Limited [2013 (9) TMI 536 - CESTAT, NEW DELHI], is directly applicable to the case, where the Tribunal held that the structural steel items used at the time of commissioning of new plant for production of the capital goods are not eligible for credit as inputs and that ER-1 returns did not declare their use in the manufacture of capital goods. Penalty - Held that: - Since the credit was irregularly taken and there is no production of capital goods under Notification No.67/95 dt.16.3.1995 and no declar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and imposed penalty of equivalent amount on the appellant. In appeal, the Commissioner (Appeals), upheld the order of the adjudicating authority and rejected the appeal of the appellant. Aggrieved from the same, the appellant have come before this Tribunal. 2. Learned Advocate for the appellant submits that the impugned goods were used captively for manufacture of the capital goods in their factory. The goods were required as supporting structure for EOT crane, zinc tank and MS bars. He referred to the Chartered Engineers certificate submitted before the lower authority and submitted that the Chartered Engineer has given utilization of various items. On being asked, he admitted that he did not have the facility to produce these items a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were already installed at the time of statement, the director made no reference to the said items in his statement and admitted the correct position. He relied on the following case laws: (a) Bajaj Hindustan Ltd Vs. CCE, Meerut-2012 (284) ELT 565 (Tri.Del.) (b) Bajaj Hindustan Ltd Vs.Union of India-2013 (295) ELT 20 (All.) 4. Heard the rival submissions and examined the records. 5. I find that the impugned goods do not qualify as inputs for the products manufactured by the appellant. The only question to decide is whether the goods have been used as inputs for manufacturing capital goods in the factory. At the time of visit of the officers, the director of the company had clearly admitted that they had wrongly taken the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D purposes (Maruti Suzuki India Ltd.) (supra) and hence are not applicable. Other case law of P atiala Distillers Manufacturers Limited (supra) is about the credit on capital goods used for processing exempted and dutiable goods and hence are not relevant to the facts of the present case. In Associated Cement Co.Ltd.(supra), the issue was credit on certain steel items used for connecting/ducting in kilns for manufacture of intermediate product, which is not the issue in present appeal. In Jawahar Mills Ltd.(supra), the period pertains to 1994 when definition of capital goods was very wide. Hence, the same is not applicable to the facts of the present case. The order dt.27.10.2011 of the Commissioner (Appeals) also does not come to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that regard. 33. The assessee, in response to the show cause notice had stated that there is no provision in Central Excise Law to disclose the details of the credit or to submit the duty paying documents, which in our opinion is false and an attempt to deliberately contravene the provisions of the Act, 1944 and the rules made thereunder with an intent to evade the duty. 34. In our opinion, the facts of the present case clearly suggest wilful suppression of material facts by the assessee as well as contravention of the provisions of the Act and rules framed thereunder with an intent to evade the demand of duty as would be covered by Clauses IV and V of Section 11A(1) of the Act, 1944. Therefore, the invocation of the extended per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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