2017 (4) TMI 744 - AT - Central Excise

CENVAT credit - Railway Track Material - Lighting equipment, fittings and fixtures - Refractory cement blocks, plates - Welding Electrodes under Chapter 8311 - Steel Items beam falling under Chapter 72 and Misc. other items - Held that - the identical issue has come up in the assessee s own case for the earlier period M/s. Steel Authority of India Ltd. Versus CCE & Customs, Raipur 2016 (12) TMI 840 - CESTAT NEW DELHI , where it was held that The railway track is part and parcel of material handling system integrally connected with the production on movement of dutiable goods - credit allowed. Lighting equipment, fittings and fixtures - Held that - identical issue came in the assessee own case M/s. Steel Authority of India Ltd. Versus CCE & Customs, Raipur 2016 (12) TMI 840 - CESTAT NEW DELHI , where it was held that Admittedly, 24 hours illumination of shop floors is essential requirement and as such, the role of these High Mast Lighting Equipment has to be recognized in the process of manufacturing activity. Refractory cement blocks, plates - Held that - reliance was placed in the case of STEEL AUTHORITY OF INDIA LTD. Versus COMMR. OF C. EX., RAIPUR 2008 (4) TMI 94 - CESTAT, NEW DELHI , where it was held that credit on items used in manufacture of parts of capital goods which are further used along with capital goods, is allowed - however, ld. DR for the department submits that facts of the earlier order (supra) are quite different - issue remanded to the adjudicating authority to decide the same de novo - matter on remand. Welding Electrodes under Chapter 8311 - Held that - the issue is covered by the ratio laid down by the jurisdictional High Court in the case of Ambuja Cements Eastern Ltd. Vs. CCE, Jaipur 2010 (4) TMI 429 - CHHAITISGARH HIGH COURT , where it was held that welding electrodes used in repair and maintenance of plant and machinery are inputs as defined under Rule 2(g) defined in the rule, and thus entitled for cenvat credit - credit allowed. Steel Items beam falling under Chapter 72 and Misc. other items - Held that - no detailed reasons given in the impugned order pertaining to the denial of Cenvat credit in question. Hence, we set aside the impugned order pertaining to these items and remand the matter to the adjudicating authority to decide the same de novo - matter on remand. Appeal allowed - decided partly in favor of appellant and part matter on remand.

Summary

Issues:
I. Railway Track Material
II. Lighting equipment, fittings and fixtures
III. Refractory cement blocks, plates
IV. Welding Electrodes under Chapter 8311
V. Steel Items beam falling under Chapter 72 and Misc. other items

Railway Track Material (Issue No. 1): The appellant, engaged in manufacturing iron and steel items, claimed Cenvat credit on railway track materials used inside the factory premises. The Tribunal referred to a previous case and the decision of the Hon'ble Supreme Court, emphasizing the integral connection of railway tracks with the production process. Citing precedents, the Tribunal allowed the credit on railway track materials as integral handling equipment, setting aside the impugned order and granting the claim of the appellant.

Lighting equipment, fittings and fixtures (Issue No. 2): The issue revolved around the denial of Cenvat credit on lighting equipment. The Tribunal noted the essential role of these items in industrial operations for steel production, rejecting the argument that they become part of civil structures. Referring to a previous case, the Tribunal allowed the credit on lighting equipment, fittings, and fixtures, setting aside the impugned order and upholding the claim of the appellant.

Refractory cement blocks, plates (Issue No. 3): The denial of Cenvat credit on refractory materials was challenged by the appellant, citing Tribunal decisions in favor of such credits. The Tribunal remanded the issue to the adjudicating authority for a fresh decision, allowing for additional evidence and a reevaluation of the denial based on the settled principle that refractory materials are entitled to credit.

Welding Electrodes under Chapter 8311 (Issue No. 4): The denial of Cenvat credit on welding electrodes was addressed by referring to the jurisdictional High Court's decision and a previous Tribunal ruling in a similar case. Following the precedent, the Tribunal set aside the impugned order and allowed the claim of the appellant regarding the Cenvat credit on welding electrodes.

Steel Items beam falling under Chapter 72 and Misc. other items (Issue No. 5 & 6): The denial of Cenvat credit on steel items and miscellaneous items was remanded by the Tribunal to the adjudicating authority for a fresh decision. Noting the lack of detailed reasons in the impugned order, the Tribunal directed a reevaluation of the denial, providing the appellant with a reasonable opportunity and allowing for the admission of fresh evidence as per law.

In conclusion, the Tribunal partly allowed the appeal filed by the appellant, granting relief on various issues related to Cenvat credit claims for different items used in the manufacturing process of iron and steel products.