KEIHIN FIE PVT. LTD. Vs. CCEX

JUDGEMENT

(1.) HEARD both sides.

(2.) THE issue involved in the present appeal is denial of cenvat credit of 100% on the capital goods during the subsequent financial year. The appellants herein engaged in the manufacture of carburetors falling under CSH No. 8409.00 of the schedule to the Central Excise Tariff Act 1944. During the scrutiny of the record of the appellants it was observed that they have availed cenvat credit on capital goods to the tune of Rs. 1,72,354/ - vide cenvat entry No. 70/31.5.2004 against bill of entry No. 803937 dated 18.2.2004. As per the provisions of Rule 12 of the CENVAT Credit Rules, 2002, the cenvat credit of capital goods to be availed should be 50% of the duty paid in the corresponding duty paying documents. The total CVD paid on these goods was Rs. 1,72,354/ -, that they availed 100% cenvat credit in the same financial year. The show cause notice dated 13.1.05 was issued for recovery of excess cenvat credit of Rs. 86,177/ -. The adjudicating authority confirmed the demand of Rs. 86,177/ -, imposed penalty of Rs. 22,000/ -under Rule 13 of the Cenvat Credit Rules, 2002 and also recovery of interest under Section 11AB. Apart from that the plant and machinery were also ordered to be confiscated as against the redemption fine of Rs. 5,000/ -. On filing the appeal, the Commissioner (Appeals), Central Excise, Pune upheld the order of the adjudicating authority confirming the demand and rejected the appeal. Hence the present appeal.

(3.) IN order to better appreciate the relevant rules it is felt necessary to enumerate the facts as to the receipt of the capital goods and availment of the credit as per the following table.