OMPLAS SYSTEMS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The Petitioner firm is manufacture of Wear resistance, Corrosion resistance over laid parts and welding related services for valves and other industrial applications classifiable under Chapter Heading No. 8481 40 00 of the First Schedule to the Central Excise Tariff Act, 1985 and is registered with Central Excise Vide No. ECC No. AAAFO8838LXM001.

(2.) The Petitioner availed CENVAT on certain inputs, namely, Stellite powder and Deloro 50 for their job work for the manufacture of Wear resistance and corrosion resistance parts. The officers of Head Quarters Preventive Unit of the first Respondent visited the factory of the Petitioner on 27-6-2007 and disputed the availing of CENVAT credit on the inputs used for job work. As per the direction of the Head Quarters Preventive Unit, the Petitioner deposited a sum of Rs. 5,00,000/- and thereafter deposited an additional amount of Rs. 5,760/-. The amount demanded by the Respondents was claimed to be without any authority of law, as there were no order of the competent authority, to claim this amount from the Petitioner, as the show cause notice was received by the Petitioner on 2-1-2008. The Petitioner contested the show cause notice. The competent authority, being dissatisfied with the explanation given by the Petitioner, confirmed the demand of Rs. 5,05,759/- as depicted in the show cause notice.

(3.) The case of the Petitioner is that the Petitioner, being aggrieved by the order, filed statutory appeal before the Commissioner of Central Excise, (Appeals), Chennai. The appeal was accepted on 8-9-2009 and the Appellate Authority held that the Petitioner was entitled to avail the CENVAT credit on inputs used in job work.