Indira Banerjee, J. - (1.) THE petitioner carries on business of manufacture and sale of iron and steel products. The petitioner has factories in Durgapur in West Bengal and in the State of Orrisa. The petitioner set up 3 plants within one factory premises namely a mini, blast furnace, steel melting shop and sinter plant. Raw materials such as mild steel angles, mild steel channels, mild steel beam, mild steel joints, mild steel plate, sheets and pipes required for fabricating various components and parts were procured by the petitioner from time to time.
(2.) OUT of the total quantity of approximately 42300 MT of various Iron and steel materials for example angles channels beams pipes etc purchased and procured, the petitioner consumed 37970 MT of structural steel but availed credit of Excise duty for the only 3349 MT. According to the petitioner the petitioner did not avail any credit of the Excise duty on 4500 metric tons used in civil structures. In November 2008, the petitioner received a show -cause notice dated 21st of November 2008 issued by the respondent number 2 alleging that the petitioner had contravened the provisions of rule 4 and 6 of the credit rules 2004 as amended, by availing credit of duty paid on angles, channels etc. since they were neither defined as capital goods under rule nor as inputs under rule of the credit rules 2004 it was further alleged that the petitioner had violated the provisions of the Central Excise rules 2002 by not showing such availment in its monthly returns during the period from April 2006 till July 2008.
(3.) BY a letter dated 10 January 2009 the petitioner replied to the show cause notice. Thereafter a personal hearing was granted to the petitioner by the respondent No. 2 on 1st December 2009.;