2007 (6) TMI 409 - AT - Central Excise

Summary

Issues involved: Interpretation of the term 'Capital Goods' under Rule 2 of the Cenvat Credit Rules, 2004 regarding storage tank silos.

Summary:
The judgment by the Appellate Tribunal CESTAT, New Delhi dealt with the challenge against the Commissioner (Appeals) order regarding the classification of storage tank silos as 'Capital Goods' for Cenvat Credit. The definition of 'Capital Goods' under Rule 2 includes storage tanks, but it was argued that silos, being immovable property as they are constructed on land, do not qualify as goods. The Tribunal referenced a previous case where concrete silos were considered 'plant', but noted that 'plant' is no longer part of the definition of 'Capital Goods'. Despite a partial deposit made by the applicant, the Tribunal deemed it sufficient for hearing the appeal, directing the deposited amount to be treated as pre-deposit. The appeal was scheduled for final hearing at a later date.