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TMI Blog2016 (2) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... pital goods. Further, credit shall also not be admissible on inputs used for repair and maintenance of capital goods. In the instant case revenue has also failed to bring the evidences on record to show that the Appellant had used such inputs for construction of factory shed, building or laying of foundation or making of structures for support of capital goods. On the other hand the appellant has shown that the said inputs were used in the manufacture of Capital goods, under clause (i) of Rule 2(a) of Cenvat Credit Rules, 2004. - Decided in favour of assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... lled products. It holds the hot finished goods till it gets to cool down. Hence, it is essential part of the Rolling Mill. 579 MT of Rails has been used for cooling bed & Chattal. The Rolling Mill is classified under chapter heading No. 84. The same is duly supported with photo graphs and chartered Engineer certificate. Chattal : Chattal is attached to Cooling Bed of Rolling Mill. After cool down of Rolled products i.e. finished product of the appellant, the Rolled products goes to Chattal of Rolling Mills for quality Checks and then finally shift to dispatch yard. This chattal is mainly made form Rails and situated adjacent to the Cooling Bed. It is essential component part of Rolling Mill where manufacture of final goods completed. The Rolling Mill is classified under chapter heading No. 84. The same is duly supported with photo graphs and chartered Engineer certificate. 5.3 In the instant case I find that, the Adjudicating authority in the impugned Order-in-Original has disallowed Cenvat credit amounting to ₹ 18,20,321/- taken by the Appellant on structural steel items i.e. Rails of inputs by relying the judgment of Hon'ble CESTAT larger bench in the case of M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Cenvat credit on structural items i.e. Rails used for manufacture of components of EOT Crane and Cooling Bed etc. which have a definite function in relation to manufacture of their final product i.e. Rolled products in Rolling Mills Division and is entirely different from the supporting structures of plant & Machinery or for foundation as held by the Adjudicating authority. Also I have gone through the photographs of EOT Crane and considering the function and use of the items it can firmly said that, these items are nothing but parts and components or accessories of the Rolling Mill Unit and thus fall within the purview of Capital goods as defined under Rule 2(a) of Cenvat Credit Rules, 2004. 5.4 In the Appellant's case they have manufactured parts EOT Crane & Cooling Bed by impugned structural items. I also find that, the impugned structural items i.e. Rails are not supporting structures of Plant & Machinery or for laying foundation and hence the findings of the adjudicating authority that, these are not goods being embedded to the earth are in the nature of immovable goods and are not goods or excisable goods in terms of CBEC Circular No. 58/1/2002-CX, dated 15-1-2002 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of India Ministry of Finance Department of Revenue (Central Board of Excise & Customs) New Delhi dated the 8th July, 2010 Subject : Availability of Cenvat credit on inputs used in the manufacture of capital goods - Regarding I am directed to invite your attention to the landmark judgment of the CESTAT Larger Bench in the case of Vandana Global Ltd. v. CCE, Raipur [AIT-2010-167-CESTAT-LB] delivered on 30-4-2010, on admissibility of credit on capital goods and inputs and to state that the Tribunal has ruled that 'capital goods' defined in the Cenvat Credit Rules, in the context of providing credit of duty paid, have to be excisable goods. Whether a particular plant or structure embedded to earth can be considered as excisable goods or not has to be determined in the light of settled decisions of Supreme Court on the issue. The Tribunal has further ruled that goods like cement and steel items used for laying 'foundation' and for building 'supporting structures' cannot be treated as either inputs for capital goods or as inputs in relation to the final products and therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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