9911796707
TMI Blog2014 (9) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... id in purchase of such inputs. If the cement, angles, channels, Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (T.M.T.) and other items are used in the construction of factory shed, building or lying of foundation, the duty paid on such items the assessee would not be entailed to cenvat credit. Similarly, though the assessee is entitled to cenvat credit of cement and steel used in the manufacture of capital goods viz. storage tank, if any structure for support of capital goods is constructed and steel and cement 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 sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion of law:- "Whether, Cenvat Credit is admissible on HR Plates, Sections, Sheets, etc. (falling under Chapter No. 72 of Central Excise Tariff Act, 1985) as Capital Goods?" 3.The brief facts of the case are that the respondent-assessee, during the assessment year under consideration, was engaged in the manufacture of Sugar and Molasses and were availing the Cenvat Credit facility on both the Capital Goods and inputs under Rule 3 of Cenvat Credit Rules, 2001. It was revealed that a credit of ₹ 36,357/- on sections and HR Plates had been wrongly availed by the respondent under Rule 3, of Cenvat Credit Rules, 2001, since the said goods were neither covered under the provisions of Rule 2(b) nor Rule 2(b)(iii) of the said Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dents have bought the impugned goods in the form of plates and section but could not use it instantly. They were given a shape inside the factory as per the requirement of being fitted into the capital goods and thereafter these items were used in their factory for fabrication of storage tank for sugar cane juice clarifier. The present Cenvat Credit Rule determines the eligibility of Cenvat Credit on capital goods. Ofcourse, the components spares and accessories of the said goods are also eligible for credit. H.R. Plates and section is classified under chapter 72 of Central Excise Act, 1985. Chapter 72 does not figure as one of the chapter in the definition of the capital goods in terms of Rules 2(b) of Cenvat Credit Rules. 7. It may be me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) of the Cenvat Credit Rules. The order of the CESTAT, in rejecting the contention of the Revenue, though cryptic does not give rise to any substantial question of law necessitating interference in proceedings under Section 35G of the Act." 8. In the case of Commissioner of Central Excise, Bangalore-II Vs. SLR Steels Ltd. 2012 (280) E.L.T. (Kar.) in paragraph Nos.3 and 8 it has been observed that:- 3. Learned counsel for the revenue assailing the impugned order contends that the assessee is not in the business of manufacture of storage tanks. Storage tank is an immovable property. It is not excisable. In those circumstances, the duty paid on steel and cement which is used for the construction/manufacture of storage tank cannot be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... torage 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. Therefore, the Tribunal was justified in setting aside the said order and holding that the assessee is entitled to the benefit. 9. In the case of Union of India Vs. Associated Cement Company Ltd. 201 (267) E.L.T. 55 (Chhattisgarh) in paragraph Nos.6 and 5 it has been observed that:- "6. In the instant case also, the Tribunal has held that the assessee was entitled for Modvat credit on capital goods namely, Wear Plate, HRSS Plate, M ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
