2018 (8) TMI 453 - AT - Central Excise

CENVAT Credit - input - various steel items like HR Plate. HR Steel etc. - Held that - The Tribunal in the case of Subramaniya Siva Co-operative Sugar Mills Limited Vs. Commissioner of Central Excise Salem 2010 (1) TMI 1081 - CESTAT CHENNAI allowed the Cenvat Credit on the H.R. Sheets and Steel used for manufacture of storage tank - credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Appeal against Order-in-Appeal No. 07/CE/RKL-GST/2017
- Allegation of irregular Cenvat Credit availed on steel items
- Confirmation of demand, interest, and penalty
- Classification of items as input or capital goods
- Applicability of Cenvat Credit Rules, 2004
- Tribunal's decisions on similar cases

Analysis:
The appeal in this case was filed against Order-in-Appeal No. 07/CE/RKL-GST/2017 dated 18.09.2017 passed by the Commissioner (Appeals) GST, Central Excise, Customs., Bhubaneswar. The case involved an allegation that the appellant regularly availed Cenvat Credit amounting to ?77,263.00 on various steel items like HR Plate and HR Steel, treating them as input. The Adjudicating authority confirmed the demand of Cenvat Credit along with interest and imposed a penalty equal to the Cenvat Credit amount. The Commissioner (Appeals) upheld the Adjudication Order, leading the appellant to file this appeal.

During the proceedings, it was found that the items in question were used for "Product Storage Hopper." The Revenue contended that these goods were used as supporting steel structure, while the appellant argued that the Product Storage Hopper falls under specified capital goods as per Rule 2(a)(A) of the Cenvat Credit Rules, 2004. The appellant submitted a utilisation statement certified by a Chartered Engineer along with photographs to support their claim. The Commissioner (Appeals) noted the lack of technical explanation from the appellant. However, the issue was clarified by citing various decisions of the Tribunal. Specifically, a previous case allowed Cenvat Credit on HR Sheets and Steel used for the manufacture of a storage tank. The appellant also mentioned that credit was subsequently allowed in their own case by an Order dated 29.11.2017.

Based on the discussion and precedents, the impugned Order was set aside, and the appeal filed by the appellant was allowed. This decision was pronounced in the open court, bringing an end to the dispute regarding the classification and eligibility of Cenvat Credit for the steel items in question.