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TMI Blog2016 (8) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been denied as well as on HR SS plate used for fabrication of the body of the storage tank of Ethyl Acetate in the chemical plant have been denied. 2. Vide the show cause notice dated 21/4/2010, the revenue objected to taking of Cenvat credit on A.C. corrugated sheets, HR SS sheet, aluminium coil and aluminium sheet, as it appeared that the appellant have taken Cenvat credit in violation of the provisions of Rule 2 and 3 of CCR's. The appellant contested the SCN and the same was adjudicated vide Order-in-Original dated 21/2/11 observing that the items in dispute are used in the plant for general-purpose and Cenvat credit is not admissible, the proposed demand was confirmed Rs. 1,31,825/- along with interest and further penalty of eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ute HR SS plates have been used for fabrication of body of the storage tank of Ethyl Acetate in the chemical plant and as such they form part or component of the storage tank. It is further stated that the learned Commissioner have misdirected himself in observing that, items are used as component of the storage tank, thus denying the credit. Actually the sheets form part of the body of the tank and as such are fully allowable under Rule 2(a)(A)(vii), wherein the storage tank have been specifically mentioned as capital goods. So far as A.C. Corrugated Sheet is concerned it is explained that these are used in the bagasse handling system of 170 Ton boiler, wherein the sheets are used to cover the rubber belt of bagasse handling system through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inery for use in manufacture of goods, for its greater efficiency and better results and thus it is an integral part of process with which the primary machinery are engaged. Therefore there is no impediment for the goods in question qualifying as capital goods, eligible for Modvat credit. The ld. Counsel also relied on the ruling of the Apex Court in the case of CCE Vs. Rajasthan Spinning and Weaving Mills Ltd., wherein steel plates, MS channels etc. used in the fabrication of Chimney for diesel generating set was held to be capital goods as chimney being a pollution control equipment, was necessary for the diesel generating set which are essential for manufacture of excisable goods. 4. The learnedly for revenue relies on the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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