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TMI Blog2008 (6) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri B.L. Meena, SDR, for the Respondent. [Order per : P.C. Chacko, Member (J)] - Appeal No. S/104/2007 is against denial of Cenvat credit on capital goods amounting to over Rs. 32.00 laths for the period 2004-05 and 2005-06 (up to June 2005). Appeal No. S/134/2007 is against denial of Cenvat credit on capital goods amounting to over Rs. 1.10 crores as also against demand of equal amount of service tax for the period 2005-06 and 2006-07. This appeal also challenges penalties imposed on the appellants. The appellants are a PSU, who have obtained the requisite clearance from the 'Committee on Disputes' to pursue these appeals. 2. After examining the records and hearing both sides, we note that the appellants viz. M/s. BSNL are re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable services. Therefore, strictly speaking, it was not open, during the material period, to the appellants to treat the CSD Madurai as a "first stage dealer". It was open to them at SSA Salem to take the Cenvat credit in question on the strength of copies of the manufacturer's invoices whereunder CSD Madurai purchased the goods for M/s. BSNL. In other words, according to the learned counsel, M/s. BSNL at Madurai purchased the capital goods and at Salem look Cenvat credit thereon under copies of the relevant invoices issued by the manufacturer of the capital goods. In this connection, the learned counsel has referred to the erstwhile Modvat scheme wherein the head office of a company, which purchased capital goods/inputs and supplied the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der challenge in Appeal No. S/104/2007. Accordingly, there will be waiver of pre-deposit and stay of recovery in the said appeal. 4. In the other appeal, the facts are somewhat different. M/s. BSNL have a Deputy General Manager (Projects) at Chennai, Salem and Madurai. The DGM (Projects) at Salem has jurisdiction over the SSAs at Salem, Trichy, Coimbatore and Kumbakonam. During the period of dispute (2005-06 and 2006-07), the capital goods purchased by the DGM (Projects), Salem were supplied to Trichy, Coimbatore and Kumbakonam SSAs and Cenvat credit thereon was taken by SSA Salem. These credits totalling to over Rs. 1.10 crores were denied to the appellants on the ground that the SSA which took the benefit did not receive the capital g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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