HINDALCO INDUSTRIES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) Heard both sides.

(2.) The appellant filed this appeal against the order -in -appeal passed by the Commissioner (Appeals) whereby the demand of Rs. 34,694/ - is confirmed. After denying the Modvat credit in respect of capital, goods which were treated as 'obsolete'in the record of the appellant. A penalty of equal amount was also imposed under Section 11AC of the Central Excise Act.

(3.) The contention of the appellant is that the credit was taken in respect of the capital goods on receipt in the factory, there is no dispute regarding taking of the credit. The contention is that due to passage of time, certain capital goods cannot be put to use and the capital goods were treated for accounting purpose, as obsolete and the Revenue from the appellant's record where certain goods were treated as obsolete and issued a show cause notice. The contention is that as the capital goods are lying still in the factory, therefore, credit cannot be denied.