SHREE AMBIKA SUGARS LTD. Vs. CCE

JUDGEMENT

(1.) THE appellants are engaged in the manufacture of sugar and molasses. Their capital goods include 'P Range 125 KW Panel Board'. Three pieces of this panel board, which had been procured from M/s. Kirloskar Electric Company Ltd., Mysore were sent back to them for certain repairs. M/s. KECL undertook such repairs [replacement of certain parts] and cleared the capital goods to the appellants on payment of duty of Rs. 98,899/ - on the repair charges of Rs. 6,06,000/ -. This clearance was under an invoice issued under Rule 52A of the Central Excise Rules, 1944. Upon receipt of the capital goods in their factory, the appellants took credit of the above amount of duty in their CENVAT account. This was objected to by the department. A show -cause notice followed. It was contested by the party. The adjudicating authority disallowed the Modvat credit and imposed a penalty of Rs. 25,000/ - on the appellants. The appeal filed by the party against the decision of the original authority was rejected by the Commissioner (Appeals). Hence the present appeal.

(2.) LD . Counsel for the appellants relies on the decision of this Bench in the case of Commissioner v. Chemplast Sanmar Ltd. and prays for setting aside the impugned order. Ld. DR reiterates the findings of the Commissioner (Appeals).