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TMI Blog2017 (2) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no time limit provided for taking CENVAT credit under CCR, the same cannot be denied on the ground of delay. The appellants are rightly entitled for capital goods credit on various structural steel items used for setting up the blast furnace as well as coke oven batteries - appeal allowed - decided in favor of appellants. - E/609/2007-DB - Final Order No. 20236 / 2017 - Dated:- 13-2-2017 - Shri S. S. Garg, Judicial Member And Shri V. Padmanabhan , Technical Member Mr. M. S. Nagaraja, Advocate For the appellant Mr. Mohammed Yousuf, AR For the respondent ORDER Per V. Padmanabhan The appellant is engaged in the manufacture of HR coils, sheets falling under Chapter 72 of the Central Excise Tariff Act. The assessee is availing the benefit of CENVAT credit on inputs as well as capital goods in terms of CENVAT Credit Rules (CCR), 2004. The dispute pertains to availment of CENVAT credit of the duty paid on HR plates and sheets manufactured and cleared by the appellant themselves. CENVAT credit was also availed on certain items such as MS beams, channels, joists manufactured and supplied by other vendors. These goods were used within the factory of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltant structures are in the nature of immovable property and are not capable of being bought and sold in the ordinary course of sale as goods. Hence, credit of duty as capital goods has been denied. 4. The main grounds of appeal advanced by the appellant are summarised below: i. The Appellants had submitted that the Blast Furnace fabricated and erected in the factory was classifiable under CHH 8417 and Coke Oven Plants under CHH 8479 and hence they were covered by the definition of capital goods . Therefore, the inputs used for fabrication or manufacture of capital goods which are further used in the factory are eligible for CENVAT credit in terms of Explanation 2 to Rule 2 (k) of the CCR, 2004. CHH 8417 10 00 of the CETA, 1985 covers - Furnaces and ovens for the roasting, melting or other heat treatment of ores, pyrites or of metals . The Blast Furnace admittedly used for melting iron ores to produce hot metal is thus covered under CHH 8417 and hence capital goods. CHH 8479 8960 covers - Coke Oven Plants . Para 3 of the SCN confirms that the Coke Oven'Bafteries are used to produce Metallurgical Coke which is used in the Blast Furnace to produce Hot Metal. The fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory are eligible for CENVAT credit in terms of Explanation 2 to Rule 2 (k) of the CCR, 2004 even if the capital goods are fixed/embedded to earth. v. It is settled law that there was no time limit under the CCR, 2004 for taking credit. The credit cannot be denied on the ground that the credit was taken after one and a half years from the date of invoices. vi. It is undisputed that the assessee had entered in to agreement dated 4.5.2004 with M/s. Euro Ikon Iron , Steel (P) Ltd (EIISPL) for construction and erection of Blast Furnace within the factory and agreement dated 12.8.2004 with M/s. Euro Coke Energy (P) Ltd (ECEPL) for setting up of Coke Oven Plant within the factory. The Blast Furnace and Coke Oven Plant fabricated and erected within the factory are used within the factory for manufacture of dutiable HR , CR Steel as final products. The fact that Special Purpose Vehicles were only for the purpose of setting up of Blast Furnace and Coke Oven Plant within the factory of the manufacturer and that soon thereafter they merged with JSW Steel Ltd on 14.12.2005 would show that the assessee was the sole user or beneficiary of the inputs and the resultant capital goods. The o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the substantial civil work involved in the construction and erection of these. It has also been considered that the resultant structures are not capable of being bought and sold in the ordinary course of sale and hence cannot be considered as goods. Since the CENVAT credit is allowable only for capital goods and the inputs used in the manufacture thereof, the credit has been denied. 7. The claim of the appellant is that both blast furnace as well as coke oven batteries are covered within the Central Excise Tariff Act and classifiable under CETH 8417 which covers Furnaces and ovens for the roasting, melting or other heat treatment of ores, pyrites or of metals . 7.1 It has been submitted that blast furnace is used for melting iron ore to produce hot metal and hence, covered within CETH 8417 and hence capital goods. CETH 8417 8960 covers coke oven plants . Since the coke oven batteries are used to produce metallurgic coke for use in the blast furnace, these are covered within the description of the above subheading. Accordingly, the appellant has claimed that blast furnace as well as coke oven batteries should be considered as capital goods. Since the structural steel i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or tree. In view of the above discussions, it emerges that both manufacturing facilities are to be considered as capital goods. 10. We may look at the situation from another perspective. We are not deciding the excisability and chargeability to excise duty of blast furnace and coke oven batteries. There is no doubt that the structural steel items, which are duty paid, have been used in the fabrication of these two structures. Rule 2(a) of CCR, 2004 defines capital goods. It includes all goods falling under Chapter 82, 84, 85, 90, etc. The definition of capital goods also includes components, spares and accessories of goods above. There is no dispute that the structural steel items are components and have been used in the fabrication and assembly at site of the manufacturing facilities. Consequently, we take the view that even if the blast furnace as well as coke oven batteries are made immovable by attaching them to the foundation for trouble free function, the eligibility for availment of CENVAT credit cannot be denied. There is one more ground advanced by the Revenue to deny the CENVAT credit. The credit has been taken belatedly i.e., after a period of one and half years a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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