At, Customs Excise Service Tax Appellate Tribunal South Zonal Bench At Chennai
By, THE HONOURABLE MS. JYOTI BALASUNDARAM
By, VICE PRESIDENT & THE HONOURABLE DR. CHITTARANJAN SATAPATHY
By, TECHNICAL MEMBER
M.S. Nagaraja, Adv., Shri V.V. Hariharan, JCDR.
Judgment Text
Per: Dr. Chittaranjan Satapathy
Heard both sides. The impugned Show Cause Notice alleges that the appellants used runner mass falling under Chapter 38 in the blast furnace for conveying molten metal from the blast furnace. The appellants have taken credit of duty paid on runner mass as inputs. It is the case of the department that the runner mass is part of the blast furnace and hence capital goods, consequently, the authorities below have held that the appellants should have taken 50% of the credit in the first year and the balance 50% in the second year.
2. Even assuming that the department?s case is valid, the appellants should be entitled to the full amount of credit but only with a time lag of one year. Hence, there cannot be a net demand on the appellants. We, therefore, find that the demand of duty confirmed by the authorities below against the appellants is prima facie not sustainable. H
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ence, we waive the requirement of predeposit during the pendency of the appeal and stay recovery thereof.
