2015 (5) TMI 329

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..... . Lal,JJ. For the Appellants : Mohammed Shaffiq, Shri P Purushotham & Shri Avra Mazumder, Advs. for the No. (i) Applicant, Shri Ravi Raghavan & Miss Satabdi Chatterjee, Advs. for the Applicant No. (ii) & (iii) For the Respondents : Shri K Chowdhury & Shri A K Biswas, Supdt. (AR) ORDER Per Dr. D. M. Misra These applications are filed seeking waiver of predeposit of Cenvat Credit of Rs. 2.75 C .....

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..... tural steel work. 3. He further submits that pursuant to the said contracts, the capital goods sold/supplied by M/s L & T Ltd. and other manufacturers, the Applicant M/s Tata Steel Ltd have availed cenvat credit on the same under the relevant CENVAT Credit Rules,2004, that is, 50% of the credit in the first financial year and balance 50% in the subsequent financial year. The capital goods were re .....

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..... ame cannot be treated as capital goods in the hands of Tata Steel Ltd, accordingly, CENVAT Credit is not admissible. The ld. Advocate has vehemently argued that the out-put service rendered by M/s L & T Ltd., considering the whole project as works contract service, and without availing credit on supplied materials as inputs , would not disentitle the Applicant M/s Tata Steel Ltd., as capital goods .....

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..... Steel Ltd, on the capital goods sold/supplied by M/s L&T Ltd.; but for the composite nature of contract, wherein both the parties have categorically agreed for supply as well as rendering of service, therefore, the capital goods which were sold by M/s L & T Ltd. to the Applicant, cannot be eligible to cenvat credit being input for M/s L & T Ltd. in providing the output service of works contract s .....

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..... derstandable as how payment of service tax by M/s L&T Ltd. treating the project as works contract, would deprive M/s Tata Steel Ltd to avail credit on the duty paid capital goods sold/supplied. Thus, we are of the opinion, that the Applicants could able to make out a prima-facie case for total waiver of pre-deposit of dues adjudged.  Consequently, pre-deposit of dues adjudged against all the .....

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