2016 (1) TMI 1245

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..... sories? - Held that: - There is no dispute that these goods have not been used in the factory. The items have been used as insulation to pipes and tubes, so as to enable the distribution of steam effectively from boiler and would necessarily be an accessory by adding to the usefulness and effectiveness of the main equipment. In view thereof, the denial of credit is unjustified - appeal allowed - d .....

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..... dit and dropped the proceedings. The Department carried the issue in appeal, and vide order impugned herein, the Commissioner (Appeals) allowed the credit on GI Round Barrels but disallowed credit on the other items. Being aggrieved, the appellants have filed the present appeal. 2. On behalf of the appellants the learned counsel Shri M.S. Nagaraja explained that Aluminium rolls/sheets and Alumi .....

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..... ever, the appellant had produced photographs, invoices and other documents to establish the purpose manner in which the impugned items were used. The adjudicating authority after verification of documents has observed that the said items were used to cover the pipes which carry the steam and water from the boiler to ensure that the steam and water is not leaked out. These items were used like insu .....

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..... oner (Appeals) has rightly disallowed the credit. 4. I have heard the submissions made by either side and perused the appeal papers carefully. The issue is whether Cenvat credit availed on Aluminium rolls/sheets and Aluminium Rolled High Tensile Steel sheets are eligible for credit as capital goods/components/spares/accessories. The Commissioner (Appeals) has allowed credit on GI Round Barrels, .....

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..... sed as insulation to pipes and tubes, so as to enable the distribution of steam effectively from boiler and would necessarily be an accessory by adding to the usefulness and effectiveness of the main equipment. In view thereof, I find that the denial of credit is unjustified. The same has to be allowed. As the substantial issue is answered in favour of the appellant, I do not enter into the issue .....

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