SBQ STEELS LIMITED Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This writ petition is filed by the petitioner challenging the show cause notice dt. 14.12.2011 bearing No. C. No. V/72/15/181/2011-Adjn. O.R. 55/2011-CEx issued by the respondent on the ground that the contents thereof indicate that the respondent had predetermined the liability of the petitioner company. The petitioner prays that the said show cause notice and all consequent proceedings thereto be set aside. The brief facts of the case are that the petitioner is a Company registered under the Companies Act, 1956 engaged in the business of manufacturing steel products and catering to the needs of the automobile and engineering sectors in India and abroad. It is also registered under the Central Excise Act, 1944 (for short "the Act").

(2.) The petitioner availed for the period December, 2007 to March 2011, benefit of Cenvat Credit on the excise duty paid on goods such as cement, MS Angles, MS Channels, TMT/CTD bars, MS rounds, MS Squares, Joists, Beams etc., used in the course of manufacture of steel products which have been utilized in the manufacture of excisable products under Rule 3 of the CENVAT Credit Rules, 2004.

(3.) Basing on intelligence gathered that the petitioner company availed huge amounts of Cenvat credit on certain ineligible goods under the category of capital goods, contravening provisions of the said Rules and thereby availed/availing Cenvat Credit and making use of the Cenvat Credit so availed for discharging their duty liability on the finished products, Officers of the Headquarters, Preventive. Unit, Guntur belonging to the Central Excise department (for short "the Department") visited the unit of the petitioner on 6.8.2010.