JINDAL STEEL AND POWER LTD. Vs. CCE

JUDGEMENT

(1.) THE issue involved in this case is as to whether the items Mudgun clay, EBT filling mass and HSS Tool Bits are inputs or capital goods. The appellants used these items as inputs and availed credit of 100% duty. Show cause notice was issued proposing to recovery 50% of the duty as the items are capital goods. The Adjudicating Authority held that these items are inputs. Revenue filed appeal whereby the Commissioner (Appeals) held that these items are capital goods. The appellants filed this appeal against the order of the Commissioner (Appeals).

(2.) THE learned Advocate for the Appellants submits that the use of these items as mentioned in the adjudication order, are clearly indicative that these items were used in relation to manufacture of final products. She further submits that the Commissioner (Appeals) had not disputed the use as mentioned in the adjudication order. However, the Commissioner (Appeals) held that these items are refractory materials and covered under the definition of "capital goods". She relied upon the following decisions of the Tribunal:

(3.) AFTER hearing both the sides and on perusal of record, I find that the adjudicating authority had discussed the use of these items in the adjudication order, which are reproduced below: