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TMI Blog2018 (2) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... age system Mezzanine floor would be capital goods but for the purpose of Cenvat Credit Rules the definition is very clear and the said goods do not fall under the definition of input/ capital goods - credit not allowed. Mobile Compactor Bin Storage System - Held that: - In normal parlance, the storage bin would be considered as capital goods but for cenvat credit goods have to fall under the definition of capital goods as it appears in the Cenvat Credit Rules 2004. The instant case is classifiable under chapter 94 and is thus clearly not covered under the definition of capital goods. Since the appellants have not countered the regarding the goods not fall under the said definition of the Cenvat Credit Rules the credit of the same cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credits on which the appellants could have had bonafide belief. In view of above, penalty under Section 11AC is not justified. The issue regarding the recovery of interest is remanded to the original adjudicating authority to determine after examining the facts regarding utilisation of the said disputed credit or otherwise. Decided partly in favor of assessee, partly against assessee and part matter on remand. X X X X Extracts X X X X X X X X Extracts X X X X ..... ery. 6. Impeller Spares Neither capital goods nor inputs Used in Kirloskar Ebara Impeller Pumps for better functioning and smooth operation of the refinery. 7. Switch Board Neither capital goods nor inputs Used for Cr.LPG & OM&S substations for replacement of electrical facilities. 3. Ld. Counsel relied on the following decisions:- In respect of storage system installed in factory, credit admissible * Lear Automotive India Ltd. - 2013 (291) ELT 411 (T) * Banco Products (India) Ltd. - 2009 (235) ELT 636 (Tri-LB) * Sonai Engineering Pvt. Ltd. - 2010 (253) ELT 806 (T) * Kosi Plast P. Ltd. - 2011 (271) ELT 93 (T) In respect of switch board being device for regulating electric supply:- * Grasim Cement - 1997 (96) ELT 354 (T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ike, and parts thereof falling under heading 6804) of the First Schedule to the Excise Tariff Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at (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, and (viii) motor vehicles other than those falling under tariff heading 8702, 8704, 8711 and their chassis (but including dumpers and tippers), used- (1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or (1A) outside the factory of the manufacturer of the final products for generation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r bin storage system. The credit of the same too has been denied for the reason cited in para above relating to mezzanine floor. The appellants have claimed that these are capital goods. In normal parlance, the storage bin would be considered as capital goods but for cenvat credit goods have to fall under the definition of capital goods as it appears in the Cenvat Credit Rules 2004. The instant case is classifiable under chapter 94 and is thus clearly not covered under the definition of capital goods. Since the appellants have not countered the regarding the goods not fall under the said definition of the Cenvat Credit Rules the credit of the same cannot be allowed. 7. In so far as FRP ladder trays are concerned, the same are used for layi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re covered in the definition of capital goods. The credit of same cannot be denied. 12. The appellants have claimed that they always had a balance of more than 50 lakhs in their cenvat register every month and therefore they have not utilised this amount of disputed cenvat credit. They have argued that no interest in the circumstance can be levied in the case of Hon'ble High Court of Karnataka in Bill forge Pvt. Ltd. - 2011-TIOL-799-HC-KAR-CX. I find that no evidence of non-utilisation of cenvat credit has been produced. Mere existence of balance of `50 lakhs in their cenvat credit in the end of each month is not sufficient to establish non-utilisation of the cenvat credit. What needs to be seen is by how much the amounting the closing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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