VISWANATH SUGARS LTD. Vs. COMMISSIONER OF CENTRAL

JUDGEMENT

(1.) THIS appeal has been filed against OIA No. 146/06 dated 18.5.06 passed by the Commissioner of Central Excise Mangalore. The issue is availability of capital goods Cenvat credit on structural items classifiable under Chapter 72 and 76. The lower authority denied the Cenvat credit on structural items used in the manufacture of capital goods to the tune of Rs. 4,48,983/ - plus education cess of Rs. 1528/ -. He ordered recovery of the Cenvat credit availed. Interest under Section 11AB was demanded. He imposed penalty equal to the duty demanded under Rule 13(2) and 15(2) of Cenvat Credit Rules 2002 and 2004 read with Section 11AC of the Central Excise Act. The appellants were aggrieved over the order and approached the Commissioner (Appeals) for relief. The Commissioner (Appeals) in the said order has observed that the adjudicating authority has placed reliance on the decision of the Apex Court in M/s Vikram Cement case as reported in 2005 (187) ELT 145 wherein it was held that "the term capital goods is not an inclusive definition and an item can be treated as capital goods under Cenvat Credit Rules only if it is satisfied that the goods fall under one of the specified chapters or headings of the tariff or it is spare parts, components, accessories or that it falls under one of the specified item. He has held that in the present case, general use of structural items classifiable under Chapter 72 and 76 are definitely not identifiable as parts accessories and components of capital goods falling under Chapter 82, 84, 85, 90 heading 6802 and sub -heading 6801.10" and with above observations he has upheld the denial of credit and payment of the same. The appellants are aggrieved over the impugned order.

(2.) SHRI V.B. Gaikwad, learned advocate appeared for the appellants and Shri Anil Kumar learned JDR appeared for the revenue. The learned advocate urged the following points.

(3.) THE learned SDR reiterated the OIA.