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TMI Blog2013 (12) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... re-deposit of Rupees Fifteen Lakhs as pre-deposit – upon such submission rest of the duty to be stayed till the disposal – Partial stay granted. - E/255/2011 - - - Dated:- 26-2-2013 - Pradip Kumar Das And Mathew John, JJ. For the Appellant : Shri R. Parthasarathy, Cons. For the Respondent : Shri D P Naidu, SDR PER : Mathew John The applicant is engaged in the manufacture of cement and availed CENVAT credit to the tune of Rs.12,29,244/- during the year 2004 to Sept'08 and Rs.16,16,684/- in Mar'09 Rs.16,16,684/- in Apr.'09 as credit of duty paid on capital goods. Such credit was taken on steel items like M.S. Angles, M.S. Beams, Flange Beams, M.S. Channels and TMT bars etc. Revenue was of the view that such goods would not q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous decisions which were in force during the relevant period. The learned counsel for the applicant relies on the decision of the South Zonal Bench of the Tribunal in the case of Commissioner of Central Excise, Trichy Vs India Cements Ltd. reported in 2004 (175) E.L.T.476 (Tri.-Chennai), wherein CENVAT credit was allowed on steel structure and building materials - Rebar Coils, CTD bars, TOR steel, foists and cement used for construction of plant comprising of concrete foundations, concrete silos for storing raw materials, clinker and cement pre-heater tower structure, load centres etc. The learned counsel for the applicant also pleaded that the credit of Rs.32,33,368/- availed by them between Oct.'08 and Aug.'09 was beyond the normal period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and ITR plates are used to construct the platforms, the cane carrier chain and spares are used to transfer the raw material/ semi processed material from stage to other, as the capital goods in the terms of Rule 57Q, treating these items as the parts and components of the plant. The question which arose before the Tribunal was that whether these items used for fabricating structures to support and install various machineries of the sugar plant are capital goods in terms of the Rule 57Q. The Tribunal while allowing the MODVAT credit found that these items, except MS sections and shapes, used for raising structure to support the various machines, parts of machineries of the plant would be covered by the explanation to Rule 57Q as a capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed during the months from Oct.'08 to Feb.'09 and Apr.'09 to Aug.'09. Therefore, there cannot be any argument regarding time bar for Rs.32,33,368/-. 7. We have considered the submissions of both sides and perused the records. We find that this matter is highly controversial and actual use of the goods and its nexus with manufacturing activity are very relevant for deciding the issue. On this aspect of the matter, the findings are vague because the lower authorities have concentrated on the type of articles used not its actual use. However, we would adopt the decision of the Apex Court in the case of Saraswati Sugar Mills (supra) in this matter. Therefore, we direct the applicants to make a predeposit of Rs.15,00,000/- (Rupees Fifteen Lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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