Bajaj Hindusthan Ltd Vs CCE & ST

CX- The assessee manufactures sugar & molasses - It availed cenvat credit on shape & section, angles, MS Plates, rounds, beams & rails - Further, credit was also availed on welding electrodes used in fabrication of capital goods including structural support - The inputs were also used for repair, maintenance & fabrication of sugar machinery - The Revenue denied credit on these inputs on grounds that they were not valid inputs - Duty demands were raised with interest & penalty for recovery of credit - The penalty was later reduced -

Held - The assessee is entitled to avail credit on welding electrodes used in construction & fabrication of machinery and support structures - Hence duty demand & interest be set aside - Since during the period of dispute, there were conflicting decisions on the issue, there were conflicting interpretations on the eligibility to avail credit - Thus the penalty is not imposable: CESTAT (Para 3,6,7) - Revenue's appeal dismissed : ALLAHABAD CESTAT 

Bilz Tool Pvt Ltd Vs CCE, ST & CC

CX- The assessee is a 100% EOU which manufactures and exports tool holders - It availed credit on inputs and input services - The Department opined that during the disputed period, the assessee availed ineligible credit on flooring chemicals & on medical insurance for employees & these input services lacked nexus with the final products manufactured and exported - SCN was issued alleging that the assessee suppressed material facts with intention to evade duty & avail inadmissible credit -

Held - The credit on floor paints is allowed as the same fall in the definition of input services viz., maintenance or repair of the photocopier; rent-a-cab service, information technology software service and insurance of the assets of the company - By amendment in the definition of input service w.e.f 1.4.2011, medical insurance has been specifically excluded - In the present case the credit is availed after 2011 and so must be disallowed: CESTAT (Para 3, 5.1, 5.2) - Appeal Partly Allowed : BANGALORE CESTAT 

Swastik Metal India Vs CCE & ST

CX - Allegation against assessee is that there is clandestine removal of finished goods from their factory premises - The entire case of Revenue is on the findings of lower authorities that two duplicating note books were found which contained information regarding clandestine removal of goods; vehicle intercepted carrying one consignment of copper tubes without invoice or duty paying documents on finished goods - Firstly, purchasers of finished goods manufactured by assessee, who had initially given statement that they had received finished goods from assessee without any documents or duty paying documents has next day retracted the statement by filing an affidavit - It is seen from the records out of the four purchasers whose statements were recorded two purchasers retracted by filing affidavits - Secondly, assessee had produced a Chartered Engineer Certificate indicating the production capacity and the details which indicated that assessee's factory could not have produced the kind of goods allegedly removed clandestinely, during the period in question - Lower Authorities have not controverted the said certificate by any other evidence contrary - The charge of clandestine removal is very serious in nature and the claim of assessee that nothing corroborative is brought on record as to unusual consumption of utilities and unaccounted purchase of raw materials, is correct - Impugned order is unsustainable and same is set aside: CESTAT - Appeal allowed : AHMEDABAD CESTAT