2016 (9) TMI 1312 - AT - Central Excise

CENVAT credit -iron and steel angles channels beams etc. - It is the case of the revenue that these items are not capital goods while it is the case of the appellant that these items are used for fabrication/ erection/installation of Kiln especially upgradation close circuiting project which are in the nature of the plant - Held that - in the appellant s own case Hon ble High Court of Chattisgarh in the judgment UNION OF INDIA Versus ASSOCIATED CEMENT COMPANY LTD. 2010 (10) TMI 550 - CHHATTISGARH HIGH COURT has held that cenvat credit are eligible on steel plates and MS channels used in fabrication of chimney for diesel generating set - credit allowed - decided in favor of assessee.

Summary

Issues Involved: Denial of cenvat credit of central excise duty on iron and steel angles, channels, beams, etc. during Dec. 2007 to January 2008.

Analysis:

1. Issue of Denial of Cenvat Credit: The primary issue in this case revolved around the denial of cenvat credit of central excise duty paid on specific items like iron and steel angles, channels, and beams during a particular period. The revenue contended that these items did not qualify as capital goods, while the appellant argued that they were used for the fabrication, erection, and installation of Kiln, particularly for upgradation projects related to the plant. Both lower authorities concluded that these items did not meet the criteria of being inputs related to final products, specified capital goods, or components and accessories.

2. Consideration of Previous Judgments: The judgment highlighted that the lower authorities did not evaluate the issue adequately. It referenced a similar case adjudicated by the Division bench of the Tribunal in Delhi regarding the availment of cenvat credit on plates, rounds, sheets, bars, joints, and angles. The Division bench, relying on a judgment of the Hon'ble High Court of Gujarat in the Mundra port case, ruled in favor of the appellant. Additionally, the judgment noted that the Hon'ble High Court of Chattisgarh had also allowed cenvat credit on steel plates and MS channels used in the fabrication of a chimney for a diesel generating set in a previous case. The Delhi bench had a consistent view in the appellant's case in a final order dated 02.05.2008. Based on these precedents, the judgment concluded that the impugned orders were unsustainable, and the appellant was eligible for cenvat credit on the central excise duty paid on steel plates, generators, angles, etc.

3. Decision and Conclusion: Ultimately, the judgment set aside the impugned order and allowed the appeal in favor of the appellant. The ruling was based on the application of legal precedents and the interpretation of relevant laws and regulations. By referencing previous judgments and highlighting the specific use of the items in question, the judgment provided a comprehensive analysis to support its decision in favor of the appellant.