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TMI Blog2017 (12) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... in turn are accessories of the capital goods. Penalty u/r 15 (1) of the CCR - Held that: - there is no ground for sufficient justification for imposition of such penalty and the same is set aside. Appeal allowed in part. - E/86396/15 - A/90248/17/SMB - Dated:- 23-10-2017 - Mr. Raju, Member (Technical) Shri. Rajesh Ostwal, Advocate for appellant Shri. S.V. Nair, Asst. Comm. (AR) for respondent ORDER Per: Raju 1. The appellants were denied Cenvat Credit on the articles used to manufacture the storage racks for use in their factory. Aggrieved by the said order, the appellants are before the Tribunal. 2. Ld. Counsel for the appellant argued that they are claiming the Cenvat Credit on angles, channels, bea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of steel racks uses in factory for storing inputs and finished goods is admissible as input. 3. Ld. AR relies on the impugned order. 4. I have gone through the rival submissions. I find that the appellants have claimed credit on angles, channels, beams, nut-bolts, guides, etc. under the description of capital goods as defined under Rule 2 (a) (i) of the Cenvat Credit Rules, 2004. The said definition reads as follows: (a) capital goods means:- (A) the following goods, namely:- (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.02 and sub-heading No. 6801.10 of the First Schedule to the Excise Tariff Act; (ii) pollution control equipment; (iii) components, spares and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries to the capital goods used for manufacture of finished goods. Thus, storage racks or crate would quality as accessories to the capital goods as defined under the clause (1A) of the definition of capital goods but angles, channels, etc. are not by themselves storage systems and therefore, they are only parts of such accessories. The definition does not cover parts of the accessories of capital goods and therefore, the appellants are not entitled to the credit on angles, channels, nuts and bolts used for manufacture of storage racks, which in turn are accessories of the capital goods. The decision cited by the appellants are not applicable as they are in relation to the complete storage racks or crates and not for parts of such storage ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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