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Facts:
The assessee provided storage and warehousing services. They used cement and TMT bars for construction of warehouses and took credit on Central Excise duty paid on cement and TMT bars which was disallowed, against which the assessee filed an appeal before the Commissioner (Appeals) who dismissed the appeal and allowed the Department’s claim of suppression regarding availment of Cenvat credit on ineligible goods.
Held:
CESTAT referred to the judgment of the Supreme Court in Maruti Suzuki Ltd. v. Commissioner of Central Excise, Delhi III, 2009 (9) SCC 193 wherein it was held that “all goods used in or relation to the manufacturer of the final products qualify as inputs” and had rectified the decision of the Appellate Authority by allowing credit. The Court confirmed CESTAT’s stand on allowance of credit and consequently non-levy of penalty.
