9911796707
TMI Blog2015 (11) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct in their factory, availed Cenvat credit in respect M.S. Angles, challans, coils, foundation bolts for manufacture of various tanks in their plant for hot/chilled tank of various input/chemical. Appellant also availed Cenvat credit in respect of aluminium coils, aluminum sheets, used for thermal insulation of various pipes, tubes and machines installed in the plant. The department issued show cause notice proposing denial of Cenvat credit in respect of aforesaid goods. Adjudicating authority vide order in original dropped the proceedings giving detailed findings on merit as well as on limitation. Aggrieved by the said order in original the Revenue filed appeal before the Commissioner (Appeals), who vide impugned order held that Cenvat Credit in respect of aforesaid goods is not admissible and he also held that equal amount of penalty under Section 11AC is also imposed apart from the demand of interest, therefore appellant is before me. 3. Ms. Anjali Hirawat, Ld. Counsel for the appellant submits that input on which the credit was availed such as Steel Plates, Foundation Bolt, HR Steel Coils, M.S. Angles, C.R. Sheets, Aluminum Coils & Aluminum Sheets used in the fabrication an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods and foundation is used as part of the said capital goods for its erection. She submits that foundation bolt, in the duty paying documents has been classified under chapter 84 as part of the machine. Therefore it is squarely covered under the definition of capital goods as part of machine hence credit is legally admissible on foundation bolt. As regard the issue on limitation, she submits that the appellant vide letters dated 12/7/2005 and 20/3/2006 informed department regarding set up of new IPA plant. She further submits that in view of the above communication to the department, the appellant had proved their bonafide that they never intended to take any wrong benefit. It was upon the department to issue a show cause notice, if at all the department of the view that credit was not admissible and show cause notice could not have been issued within the normal period. Since, the show cause notice, even after having submitted details regarding the availment of credit, issued beyond the limitation of one year, show cause notice is clearly time barred. She further submits that the Ld. Commissioner (Appeals) has heavily relied upon the judgment of larger bench of this Tribunal in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s his submission that appellant have not disclosed the complete details of their availment of Cenvat Credit in respect of steel and aluminium items. The appellant also not disclosed details, where such items have been used and what type of capital goods are fabricated. In absence of any such details and particularly the appellant is working under the self assessment regime, it cannot be said that appellant have disclosed the information. Therefore there is clear suppression of facts in availing Cenvat credit by the appellant. For this reason Ld. Commissioner (Appeals) has correctly invoked the extended period for demanding Cenvat Credit and for the same reason penalty under Section 11AC was also rightly imposed. 5. I have carefully considered the submissions made by both sides and perused the record. 6. I find that steel materials were used for fabrication and erection of storage tank within the factory of the appellant. The said storage tanks are undisputedly used for the storage of input finished goods and chemicals plant which is further used in the manufacture of the final product. In the chemical plant the storage tank is vital part of the entire plant and machinery. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of KCP Ltd. (supra), Bannari Amman Sugars Ltd. (supra) of Hon'ble Karnataka High Court, and various other judgments, wherein the Cenvat Credit on steel material used for fabrication and erection of the storage tank, has been allowed. Therefore, following the ratio of the above judgments, I am of the view that Cenvat credit in respect of input used in fabrication and erection of storage tank is admissible. As regard the Cenvat credit availed by the appellant in respect of aluminium sheets/coils etc. for insulation of pipes and tubes installed in the appellant factory, I find that in the chemical plant tubes and pipes are integral part of the entire plant. The pipes and tubes are compulsory for the purpose of maintaining temperature insulation and for such insulation the aluminium coils and sheets are used, therefore aluminium coils and sheets are used in plant and the credit should be allowed on such material. This issue has been considered in the judgment of National Oxygen Ltd.[2007 (207) ELT 516(T)] wherein Division Bench of this Tribunal held as under: 4.1 The items mentioned at Sl. No. 20 to 33 above are electrical devices which are capital goods as per the ratio of the J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O PROPANOL(IPA) and the by product viz. PROPANE and NORMAL PROPANOL(NPA). The intended annual production capacity of the above products will be as follows: (a) IPA 70,000 MTA (b) PROPANE 33,000 MTPA (c) NPA 4,400 MTPA The expected date of commissioning is around February, 2006. We are taking Cenvat credit of duty paid on inputs [like MS Plates, electrodes etc] used in the fabrication of Capital goods in the IPA plants. We are also taking credit of duty paid on Capital Goods, Spares, components and accessories used in the IPA plant/factory. Letter dated 20th March, 2006 Enclosed please find herewith copies of lease agreements entered with MIDC in respect of purchase of various plots and allotment letters thereof. Further, we wish to state that though our Registration Certificate mentions our address only as Plot-K-1, MIDC Area, our all other plots are registered with Excise Department. The address Plot K-1, MIDC Indl. Area is mentioned as a general practice i.e. as appeared in our Letter Heads. We have requested your office about inclusion of other plots long back vide our letter no. 401/91-92/3009 dated 31/7/1991 alongwith detailed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
