BHUSHAN STEEL LIMITED Vs. CCE
LAWS(CE)-2015-5-4
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on May 07,2015

BHUSHAN STEEL LIMITED Appellant
VERSUS
CCE Respondents


Referred Judgements :-

CCE,DELHI III V. JINDAL STRIPS LTD. [REFERRED TO]
UNION OF INDIA V. HINDUSTAN ZINC LTD. [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS VS. MDS SWITCHGEAR LIMITED [REFERRED TO]
SREE RAYALASEEMA HI-STRENGTH HYPO LTD VS. COMMR. OF CUS. & C. EX., TIRUPATI [REFERRED TO]
COMMISSIONER OF C EX, BANGALORE-I VS. ALFRED HERBERT (INDIA) LTD [REFERRED TO]


JUDGEMENT

- (1.)Rakesh Kumar, Member (T)
(2.)THE appellant company in their factories at Sahibabad (U.P.), Khopoli (Maharashtra) and Angul (Orissa) manufacture precision pipes of steel. The pipes manufactured by Sahibabad unit, Khopoli unit and Angul unit are cleared to various depots of the appellant company all over India. Each depot has Central Excise registration as a registered dealer. The present dispute in respect of Sahibabad unit. The duty paid pipes cleared by Sahibabad unit, Khopoli unit and Angul unit of the appellant to depots are sold from the depot under cenvatable invoices issued by the depots. The depots have registration as registered dealers. However, since, the pipes are sold on the basis of length, some end cuttings are left which are not saleable, these end cuttings of pipes are sent by the depots to Sahibabad unit under invoices issued by the depots as registered dealer. In these invoices, the concerned depots mention the proportionate duty paid in respect of pipes. The Sahibabad unit on receiving the end cuttings of pipes availed the Cenvat credit on the basis of these invoices and used these pipes for re -melting for manufacture of ingots. According to the Department, since while the pipes received by the depots had suffered duty on the value varying from Rs. 36/ - to Rs. 42/ - per kg., the depots, in the invoices issued for sending the end cuttings to the Sahibabad unit, had mentioned their value as Rs. 15/ - per kg, the Cenvat credit available to the Sahibabad unit would be restricted only to the duty payable on the value mentioned in the invoices i.e. Rs. 15/ - per kg. and not the duty originally paid in respect of the pipes at the time of their clearance from the respective factories. The Cenvat credit demand of Rs. 1,20,48,313/ - against Sahibabad unit of the appellant company for which two separate show cause notices have been issued, is on this basis.
The second point of dispute is as to whether welding electrodes used for repair and maintenance of the plant and machinery of the Sahibabad unit are eligible for Cenvat credit. The department being of the view that welding electrodes used for repair and maintenance of the plant and machinery are not eligible for Cenvat credit and has sought to deny the Cenvat credit in respect of the same. The Cenvat credit demand of Rs. 1,12,070/ - is on this basis.

(3.)THE third point of dispute is regarding CI Slag pots which is sort of bucket which is used for taking out molten metal from the furnace. The appellant had taken capital goods Cenvat credit of Rs. 39,140/ - in respect of this item, while according to this item is not covered by the definition of capital goods and, hence, is not eligible for Cenvat credit.
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