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TMI Blog2012 (9) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... Sheets, Chequered Plate, HR Plate, HR Sheet etc. falling under Chapters 72, 73 and 59. The contention of the applicant is that the above inputs are used for manufacture of capital goods, mainly storage tanks which are used in the manufacture of Calcined Alumina. The contention is that the benefit has been given to storage tank as capital goods as per Rule-2(a)(A)(vii) of the CCR, 2004. The contention is that their case is better placed than the storage tanks since they are used not only for storage but are also used in the manufacture of final products. In support of their contention they have placed reliance on Hon'ble High Court of Karnataka's order in the case of CCE, Bangalore-II v. SLR Steels Ltd. - 2012 (280) E.L.T. 176 (Karnataka). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks may be immovable property and pollution control equipment are included within the definition of "capital goods", input as defined in Rule 2(k) makes it clear that "input" includes in goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. Therefore, the input is not necessarily to be used in the manufacture of final product. By virtue of explanation 2 - goods used in the manufacturer of capital goods which are further used in the factory of the manufacture also falls within the definition of input. In 2009, this explanation has been amended to the following effect : "but shall not include cement, angles, channels Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement is used for such support, the assessee is not entitled to the benefit of Cenvat credit on the duty paid on such cement and steel. Therefore, there is no ambiguity in any of these provisions. When once a storage tank and pollution control equipment constitutes capital goods and any raw material purchased for construction of those goods, the duty paid could utilized as a Cenvat credit by the assessee notwithstanding the fact that the storage tank is an immovable property. Therefore, the appellate authority committed a serious error firstly in holding that the storage tank is an immovable property and secondly, on the ground that it cannot be bought and sold in the market, the criteria which is totally unwarranted under the circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X
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