SAIL Vs. COMMISSIONER OF CENTRAL EXCISE, BOLPUR

JUDGEMENT

(1.) THE adjudicating authority by the order impugned in the appeal disallowed input credit availed in respect of Fixed Facility Charges paid by the petitioner, a manufacturer of iron and steel to M/s. Goyal MG Gases (P) Ltd. M/s Goyal MG Gases (P) Ltd. set up a facilitation centre, in the space provided in the petitioners premises, from where argon and oxygen gas manufactured by the said Company were delivered to the petitioner for consumption/use in its manufacture of iron and steel. On the facilitation charges thus received, M/s Goyal MG Gases (P) Ltd. was remitting excise duty; on this aspect there is no dispute. The adjudicating authority concluded and in our prima -facie view erroneously, that facilitation charges are not in respect of any identifiable commodity consumed in the manufacture of the final product. On such analysis, the adjudication order disallowed the credit availed and confirmed recovery of Rs. 2,53,93,039/ - besides interest and penalty as specified.

(2.) THIS view is prima facie not sustainable. In this view of the matter, we grant waiver of pre -deposit in full and stay all further proceedings pursuant to the impugned adjudication order pending disposal of appeal. Application is disposed of accordingly. (Dictated and pronounced in the open Court)