Order date – 13 October 2022

Facts –

• The Appellants, M/s Prasad Explosive Chemicals are engaged in the manufacture of Emulsion Matrix (bulk explosive). For the purposes of manufacturing of the aforesaid product i.e. Emulsion Matrix (bulk explosive)”, the Appellants are using the various kinds of raw materials and also using special kind of plant/machinery.
• Show-cause notice dated 06.02.2014 was issued alleging wrong availment of Cenvat credit during the period January, 2013 to December, 2013 on the ground that the Certificate dated 26.08.2013 issued by a Chartered Engineer, is not corroborated with evidence on technical diagram with details as to how and where these items have been used. Further, it emphasized that the Appellant had failed to provide any evidence regarding the use of such goods, on which credit had been taken to have qualified as components, spares and accessories of the goods specified under the provisions of Rule 2 (i) & (ii).
• Aggrieved, Appellant has filed an appeal.

Issue – 

• Whether the denial of Cenvat credit and imposition of interest and penalty are in order?

Order – 

• The Tribunal observed that the ld. Adjudicating Authority has relied upon the Larger Bench decision of the Tribunal in the case of Vandana Global for dis-allowance of cenvat credit as claimed by the Appellant, which is not at all applicable to the facts of the present case.
• It is clear from the submission made by the appellant that the impugned goods are used for the manufacturing of storage tank and bulk mobile vehicle without which bulk explosive cannot be prepared. 
• The appeal filed by the appellant is allowed with consequential relief, as per law.