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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 ..... vat credit is allowable on the A.C. Corrugated Sheets also. Penalty levied is also set aside. - Decided in favour of assessee - Appeal No. E/2555/2011(SM) - Final Order No. A/70061/2016 - Dated:- 28-1-2016 - Anil Choudhary, Member (J) For the Appellants : Ms Menka Tripathi Ms Pushpila Bisht, Advs For the Respondent : Shri Pawan Kumar Singh (Supdt.) AR ORDER Per Anil Choudhary The appellant a manufacturer of sugar and molasses is in appeal against Order-in-Appeal dated 27/6/2011 by which Cenvat credit on AC corrugated sheets used to cover the rubber belt of bagasse handling system through which the bagasse is feeded in the furnace of the boiler have been denied as well as on HR SS plate used for fabrication of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at SS plates, MS plates etc. are used as raw materials of the capital goods. Further although they are used in repairing damage part of machinery, being capital goods. The Tribunal followed the ruling of Honourable Rajasthan High Court in the case of Hindustan Zinc Ltd 2000 214 E.L.T. 510 wherein the High Court have held that MS/SS plates used for repair and maintenance of machinery which are used for manufacture of final products are eligible for Modvat credit This Tribunal also held that there is no dispute that these items were used as raw materials of the capital goods and therefore there is no reason for denial of the credit on the items. It is further held that during the period in dispute HR SS plates have been used for fabrication o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction of excisable goods. Accordingly it is stated that this forms component of the boiler system and is essential for manufacture of excisable products. It is further urged that the ld. Commissioner have erred in denying the credit observing that the same is used as roofing material to protect the capital goods which is neither covered under the definition of capital goods nor is used as an input of the final product. The ld. Counsel also relies on the ruling of Honourable Supreme Court in the case of Union of India versus Hind Zinc Ltd. wherein the decision of the Honourable Rajasthan High Court was upheld where it was held that MS/SS plates are essential supplement to the plant and machinery for use in manufacture of goods, for its gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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