2023 (4) TMI 428 - AT - Central Excise

CENVAT Credit - Cement, MS angles, Channels, Beams, Bars, etc. used for foundation of plant and machinery in the factory of the appellant - disallowance of CENVAT credit on the ground that there is a difference between the Chartered Engineer s Certificate submitted earlier and the revised Chartered Engineer s Certificate submitted at the time of adjudication - It is his submission that in fact the revised Chartered Engineer s Certificate is more elaborated and on the basis of which the cenvat could not have been denied. HELD THAT - It is clear that in principle the tribunal has not objected the CENVAT credit on the goods such as Cement, MS angles, Channels, Beams, Bars, etc. for the construction of Silos which are used for storing of the goods. The tribunal has only remanded the matter to the appellate authority only to address the Chartered Engineer s certificate regarding consumption of the material for the fabrication of the Silos. It is found that the appellant have submitted the revised Chartered Engineer s certificate which is more elaborated based on the actual location where the goods were consumed. From the above certificate and enclosed annexure, clearly shows that how much material was used for what purpose according to said certificate, plant and machinery wise quantification of the material was provided from which it clearly appears that all the goods were used for capital goods in the factory of the appellant. On the basis of the Chartered Engineer s Certificate, there are no reason why the CENVAT credit should not be allowed. Appeal allowed.

Summary

Issues involved:
The issue involved in the present case is whether the appellant is entitled to cenvat credit for Cement, MS angles, Channels, Beams, Bars, etc. used for the foundation of plant and machinery in the factory.

Summary:

Issue 1: Cenvat Credit Eligibility
In the second round of appeal, the appellant contended that the Chartered Engineer's Certificate provided more detailed information compared to the previous submission, justifying the use of Cement and Steel for specific machinery. The appellant cited various judgments supporting the allowance of cenvat credit for such materials in the foundation of plant and machinery.

Issue 2: Tribunal's Observations
The tribunal had previously remanded the matter to address the Chartered Engineer's certificate regarding material consumption for the fabrication of Silos. The tribunal did not object to cenvat credit on goods like Cement, MS angles, Channels, Beams, Bars, etc., used for constructing Silos. The revised Chartered Engineer's certificate provided detailed information on material usage for different purposes, supporting the appellant's claim for cenvat credit.

Final Decision
After considering the submissions and records, the tribunal found no reason to deny cenvat credit based on the detailed Chartered Engineer's Certificate. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief.

Conclusion
The tribunal's decision on the eligibility of cenvat credit for materials used in the foundation of plant and machinery was based on the detailed Chartered Engineer's Certificate and relevant legal precedents, leading to the allowance of the appeal with consequential relief.