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TMI Blog2016 (12) TMI 434X X X X Extracts X X X X X X X X Extracts X X X X ..... 7) TMI 12 - SUPREME COURT OF INDIA] that steel plates and MS channels used in the fabrication of chimney would fall within the ambit of ‘capital goods’ - Appeal allowed - decided in favor of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... - EX (DB) dated 29/06/2016 ; (vii) M/s Crest Steel & Power Pvt. Ltd. vs. CCE, Raipur vide final order No. A/52133/2016 - EX (DB) dated 09/06/2016 ; (viii) Nalwa Steel & Power Ltd. vs. CCE, Raipur vide final order No. A/52262/2016 - EX (DB) dated 22/06/2016; (ix) M/s Topworth Steels & Power Pvt. Ltd. vs. CCE, Raipur vide final order No. A/52645/2016 - EX (DB) dated 27/07/2016 ; (x) M/s Petropole India Ltd. vs. CCE, Jaipur vide final order No. A/51917/2016 - EX (DB) dated 18/05/2016; (xi) CC & CE, Raipur vs. Topworth Steel & Power (P) Ltd. vide final order No. A/54016/2015 - SM (BR) dated 10/11/2015 ; (xii) M/s Thiru Arooran Sugars vs. CST, Chennai reported in 2015 - TIOL - 1734 - HC - MAD - CX. and (xiii) CCE, Raipur vs. Hi-Tech Power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, rotary klin, rotary cooler (Tariff Heading 8417.10), conveyor system (Tariff Heading 84.28), raw material processing plant (84.79) power plant (85.02) and various pollution control equipment which are specifically covered under the category of capital goods." 7. These steel items used in this manner by the appellant has not been factually disputed. However, the point of dispute is that the resultant fabricated items became part of structures which are embedded to earth and become immovable, thereby losing the name of 'goods'. Hence, Revenue contends that these items used are outside the purview of capital goods or inputs. We find that the Hon'ble Supreme Court evolved 'user test' to answer the question whether the items falls within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s available on the duty paid in purchase of such inputs. If the cement, angles, channels, Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (T.M.T.) and other items are used in the construction of factory shed, building or laying of foundation, the duty paid on such items the assessee would not be entitled to Cenvat credit. Similarly, though the assessee is entitled to Cenvat credit of cement and steel used in the manufacture of capital goods viz., storage tank, if any structure for support of capital goods is constructed and steel and cement is used for such support, the assessee is not entitled to the benefit of Cenvat credit on the duty paid on such cement and steel. Therefore, there is no ambiguity in any of these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated with evidence. For e.g., the credit was sought to be denied on steel items used for installation of conveyor system on the ground that these items are merely structures giving support to conveyor system. We find that conveyor system as a whole is rightly categorized as capital goods and unless it is established that certain structures are not part of the conveyor system, mere allegation that certain steel items are only supports will not be sufficient to deny the credit. Similarly, the allegation that silo is merely an item which was for receiving finished product and is not used for processing the goods is misleading and contrary to facts. Silo is a storage facility of the finished goods and it is a fact that silo is a storage tank in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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