KOMATSU INDIA (P) LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides on the stay application. The prayer is for waiver of predeposit of demand of Rs. 3,43,563/ - by disallowing the credit taken on trolleys treating them as inputs along with interest and equal amount as penalty. I waive predeposit of dues as per the impugned order and proceed to decide the appeal itself.

(2.) THE Appellants are manufacturers of Dump Trucks and are availing CENVAT credit of dues paid on inputs and capital goods and service tax paid on input services. The dispute relate to the period October,2006 to April, 2008 and show cause notice for recovery has been issued on 11.07.08. The show cause notice sought to disallow credit in respect of trolleys as well as plastic crates. The original authority disallowed credit in respect of both the items. The Commissioner (A) allowed credit on plastic crates treating them as inputs/capital goods in the light of the decision of the Larger Bench of the Tribunal in the case of Banco Products (I) Ltd. v. CCE, Vadodara reported in, 2009 (235) ELT 636. However, the Commissioner (A) upheld the demand of the credit on trolleys. The order of the Commissioner (A) is however silent on the penalty imposed by the original authority.

(3.) LD . SDR, reiterates the findings and reasoning of the Commissioner (A). He fairly submits that the order of the Commissioner (A) is silent on the issue relating to imposition of penalty.