Simbhaoli Sugar Ltd Vs Commissioner (CESTAT Allahabad)
CESTAT Allahabad held that Cenvat Credit on Iron & Steel is rightly denied in absence of the verification of the utilization of the same for manufacture of capital goods. Accordingly, order of lower authorities upheld.
Facts- Appellant is engaged in the manufacture of V.P. Sugar and Molasses falling under Central Excise Tariff Sub-heading No. 17011190 & 17031000 respectively of the First Schedule to the Central Excise Tariff Act, 1985.
A show cause notice dated 17.08.2007 was issued to them for disallowing & recovery of the CENVAT Credit amounting Rs.18,36,011/- availed by them on the article of Iron & Steel such as plates/ coils / Shape & Section / MS Angle / MS Round & Flat / MS Channel, falling under Chapter 72/73 of the Schedule to the Central Excise Tariff Act, 1985 along with interest & penalty on the ground that-the article of Iron & Steel, on which CENVAT Credit had been taken by the party, were used by the unit in the construction of civil structure and hence are not covered within the definition of “input” as defined under Rule 2 (k) of CENVAT Credit Rules, 2004.
The demand was confirmed vide Order-in-Original dated 21.04.2008. Commissioner(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
