9911796707
TMI Blog2017 (5) TMI 1243X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of COMMISSIONER OF CENTRAL EXCISE, BANGALORE-II Versus SLR STEELS LTD. [2012 (9) TMI 169 - KARNATAKA HIGH COURT], where it was held that Once a storage tank and pollution control equipment constitutes capital goods and any raw material purchased for construction of those goods, the duty paid could be utilized as a cenvat credit by the assessee notwithstanding the fact that the storage tank is an immovable property. CENVAT credit allowed - appeal allowed - decided in favor of appellant. - E/30814/2016 - A/30647/2017 - Dated:- 5-5-2017 - Mr. M.V. Ravindran, Member (Judicial) Shri S. Thirumalai, Advocate for the Appellant Shri Guna Ranjan, Superintendent/AR for the Respondent ORDER [Order Per: Mr. M. V. Ravi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inished goods. He would then submit that storage tanks, irrespective of the fact whether it is fabricated or purchased, Cenvat credit was allowed as per definition of capital goods . Further, he would submit that identical issue came up before Hon ble High Court of Karnataka in the case of CCE, Bangalore-II Vs. SLR Steels Ltd [2012(280) E.L.T 176 (Kar.)]. He would submit that the process of fabrication as undertaken by the appellant is to procure HR plates and fabricated the tank in the factory premises. He would submit that the adjudicating authority as well as first appellate authority have denied the Cenvat Credit of the Central Excise Duty paid, only on the ground that the tanks which are fabricated have become immovable properties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates in the factory premises for fabrication of storage tanks for storing crude oil; fabrication was undertaken in the factory premises and the tanks are used for storing of said crude oils in the factory premises. It is the case of Revenue that the fabricated storage tanks will not amount to excisable goods and the inputs i.e. HR plates used and consumed for fabrication of such tanks cannot be considered as inputs or as capital goods for benefit of Cenvat credit; is a wrong perception and incorrect appreciation of law. On the factual matrix that the said storage tanks are used by appellant for storage of crude oil and fabricated in the factory premises, denial of Cenvat credit of the central excise duty paid on such HR plates during the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t (i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; and (vii) storage tank, used- (1) In the factory of the manufacturer of the final products, but does not include any equipment of appliance used in an office; or (2) For providing output service. 7. A perusal of the aforesaid provision makes it very clear though storage tanks may be immovable property and the pollution control equipment are included within the definition of capital goods , input as defined in Rule 2(k) makes it clear that input includes in goods used in the manufacture of capital goods which are further used in the factory of the manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eel. Therefore, there is no ambiguity in any of these provisions. When once a storage tank and pollution control equipment constitutes capital goods and any raw material purchased for construction of those goods, the duty paid could be utilized as a cenvat credit by the assessee notwithstanding the fact the storage tank is an immovable property. Therefore, the appellate authority committed a serious error firstly in holding that the storage tank is an immovable property and secondly, on the ground that it cannot be bought and sold in the market, the criteria which is totally unwarranted under the circumstances. Therefore, the Tribunal was justified in setting aside the said order and holding that the assessee is entitled to the benefit. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
