2006 (9) TMI 453 - AT - Central Excise

Summary

Issues:
Admissibility of Cenvat credit on various items including Column and Beams, Structures, M.S. Grating, Brackets, Staircase & ladder.

Analysis:
The Commissioner (Appeals) considered the admissibility of Cenvat credit on different items. Firstly, regarding the Bagasse Bailing Machine, the department had denied the credit, arguing that bagasse is used as fuel at times, but the machine is used to make bales of bagasse. The Commissioner found that the loose bagasse used as fuel is different from the bagasse bales made by the machine. Citing a Tribunal decision, the Commissioner allowed the Cenvat credit on the machine. Secondly, concerning the items "Column & Beams, Structure, MS Grating, Brackets, Staircase & Ladder," the department had rejected the credit, claiming these were not parts of goods falling under specific chapters or pollution control equipment but were structural materials. However, based on usage and description provided, the Commissioner concluded that these items supported and approached sugar machinery, making them part of the manufacturing machinery. Referring to previous Tribunal and Supreme Court decisions, the Commissioner upheld the admissibility of Cenvat credit on these items.

The Departmental Representative (DR) acknowledged that the items in question were recognized as capital goods in the sugar industry. Consequently, the appeals filed by the Revenue were found to lack merit, leading to their dismissal. The judgment highlights the importance of understanding the specific usage and relevance of items in determining their eligibility for Cenvat credit. The decision emphasizes the need for a thorough analysis of the items in question and their role in the manufacturing process to ascertain their classification as capital goods for the purpose of availing Cenvat credit.