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TMI Blog2015 (10) TMI 1679X X X X Extracts X X X X X X X X Extracts X X X X ..... se (iii) of Rule 2(a) of Cenvat Credit Rules, 2004, “Capital goods” covers components, spares, accessories used in the goods specified in Clause (i) and Clause (ii) irrespective of any heading. The department failed to produce any material that these items were used as building materials. But, the appellant had given detailed use of these items in fabrication of machines in reply to show cause notice, which was not disputed by the adjudicating authority. Demand is barred by limitation. The appellant availed credit on these items and declared in their ER-1 returns. These items were used in various machineries. This fact was not refuted by the department. No material was available that the appellants suppressed the fact with intent to evad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitation. It has been submitted that the appellant, in reply to show cause notice, categorically stated that these items were used as accessories namely, Winder Frame, Air Handling System, Cooling System, Dryer Structure for the plant and machinery, and is covered under Clause (iii) of Rule 2(a) of the said Rules. He further submits that findings of the lower authorities that these materials were used in building material without any evidence. It has further been submitted that the appellant disclosed the use of these items in their monthly ER-1 returns in detail. He submits that the entire demand is barred by limitation. He filed written submission alongwith case laws. 3. On the other hand, the learned Authorised Representative for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant had given detailed use of these items in fabrication of machines in reply to show cause notice, which was not disputed by the adjudicating authority. 5. Learned counsel strongly relied upon the decision of the Hon ble Madras High Court in the case of CCE ST vs. India Cements Limited - 2014 (310) ELT 636 (Mad). In that case, the assessee was engaged in the manufacture of Cement. The assessee availed cenvat credit on capital goods namely, M.S. Plates, Angles, Channels etc. for manufacturing new ESP for raw mill project, additional fly ash handling system, MND Crusher etc. The assessee used M.S. Plates, Angles, Channels, TMT Bars etc. for erection of new plant and machineries in their factory and treated the same as the components. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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