2008 (10) TMI 225

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..... products in the factory - In view of the nature of these goods they can definitely be considered as capital goods
Shri T.K. Jayaraman, Member (T) Shri K.K. Varier, Consultant, for the Appellant. Shri V.P.C. Rao, SDR, for the Respondent. [Order].- This appeal has been filed against the impugned Order-in-Appeal No. 64/2008, dated 28-3-2008 passed by the Commissioner of Central Excise (Appeals-I) Bangalore. 2. Mr. K.K. Varier, the learned Consultant, appeared on behalf of the appellant and Mr. V.P.C. Rao, SDR, for the Revenue. 3. I heard both sides. 4. The appellants purchased new machinery for the manufacture of polyethylene flexible packing materials by a continuous process. The cost of the machinery is about Rs. 12 crores. Prior to .....

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..... ee has availed the ineligible Cenvat credit being aware of the restrictions imposed by the very definition of Capital goods regarding the place of usage and also has willfully suppressed the above facts with an intention to avail ineligible Cenvat credit. The same would not have come to light but for the detection of the same by the departmental officers during the Audit of their records. Hence, proviso to Section 11A is invokable and penalty is imposable for contravention of the Cenvat credit Rules, 2004, supra." 5. The Original Authority in his order confirmed the demand of Rs. 1,33,004/- along with the education cess under proviso to Section 11A of the Central Excise Act. Interest under Section 11AB was demanded. Mandatory penalty under .....

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..... Cement v. Union of India - 2008 (221) E.L.T. 362 (Raj.) (b) Birla Corporation Ltd. v. CCE - 2005 (186) E.L.T. 266 (S.C.) (c) Andhra Sugars Ltd. v. CCE, Guntur - 2006 (196) E.L.T. 78 (Tri.-Bang.) 8. On a very careful consideration of the issue, I find that the machinery procured by the appellant is of a type requiring higher power. Consequently, the appellants had to obtain a dedicated feeder line of 1000 KVA which is different from the 400 KVA which they have used prior to the installation of the said machinery. This factual situation has to be appreciated while deciding the issue. The power has necessarily to be brought to the factory from the BESCOM. When the appellant had to invest huge sums on cables for establishment of a feeder lin .....

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