THAKUR PRASAD SAO Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS is an application for waiver of predeposit of cenvat credit of Rs. 6.20 Crores and equal amount of penalty imposed under Rule 15(2) of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944.

(2.) AT the outset, the ld. Advocate appearing for the Applicant, has submitted that during the period from April, 2007 to December, 2008 they had availed cenvat credit on various items, namely, M.S. Angles, Channels, Beams, Plates, flats, G.C./G.P. Sheets etc., used in the manufacture of capital goods, and on certain capital goods, under Rule 2(k) and Rule 2(a) of Cenvat Credit Rules, 2004, respectively. The demand was confirmed against them on the ground that the aforesaid items were used in fabrication of structural not related to capital goods as defined as Rule 2(a) of Cenvat Credit Rules, 2004, hence not admissible to credit. Rebutting the said allegation leveled in the show -cause notice, the Applicant had furnished the detail use of the said items in their factory claiming that they were used in or in relation to the fabrication/manufacture of capital goods as defined under Rule 2(a) of Cenvat Credit Rules, 2004. Hence, the credit is admissible to them. In support of their claim on the use of the said items, they have also furnished Chartered Engineers Certificate before the Adjudicating Authority. It is their grievance that even though the Department had got the contention of the said Chartered Engineers Certificate verified through Range Superintendent, a copy of verification report was not endorsed to them, depriving them in rebutting the findings of the Range Superintendent in the said report. The ld. Advocate has vehemently argued that this has resulted in gross violation of principle of natural justice and hence, the demand cannot be sustained against them.

(3.) AFTER hearing both sides for some time, we find that the appeal itself can be disposed of at this stage. Consequently, after waiving the requirement of predeposit of dues adjudged and with the consent of both sides, the appeal is taken up for final disposal.