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TMI Blog2018 (3) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... of 2016, Ex. Appeal No. 51921 of 2016 & E/Cross/51292 of 2016 - Final Order Nos. 50995 – 50996/2018 - Dated:- 13-3-2018 - Hon ble Mr. Justice (Dr.) Satish Chandra, President And Hon ble Mr. B. Ravichandran, Member (Technical) Sh. Akhil Gupta, Advocate for the assessee Sh. R. K. Mishra, AR for the Revenue ORDER Per: B. Ravichandran: Both assessee and the Revenue are aggrieved by the order dated 23.12.2015 of Commissioner of Central Excise, Bhopal. 2. The assessee-appellant is engaged in the manufacture of petroleum products liable to Central Excise duty. They have engaged various contractors for executing different work in their manufacturing premises. The dispute in the present appeals is with reference to eligib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tested the findings of the Original Authority. Ld. Counsel relied on various decided cases to support his contention. His submission is that all these items are fabricated inside their factory premises for use directly or indirectly in the manufacturing facility of the appellant. The nature of use of each item is tabulated in the appeal memo. 5. Ld. AR appearing for the Revenue submitted that the Authority has erred in granting credit to the appellant-assessee, in respect of HR steel plates used in the construction of storage tanks under the category of inputs. Ld. AR also submitted that storage tanks which are fabricated using the duty paid HR sheet were immovable assets and are not to be considered as capital goods. Fabrication of capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . These cable trays are used essentially for laying the electrical cables which are directly relevant to the manufacturing process. Reliance is placed on the decision of Tribunal in Shree Cement - 2016 (332) ELT 759 (Tri. Del.) (iii) Credit on grating, chequered plates, fabricated platform are disallowed on the same ground that they were part of immovable property. Here it is relevant to note that the eligibility of the product used to fabricate certain structures can be decided by applying user test as evolved by the Hon ble Supreme Court in the case of CCE, Jaipur v. Rajasthan Spinning Weaving Mills Ltd., 2010 (255) E.L.T. 481 (S.C.). The Hon ble Supreme Court relying on their decision in Jawahar Mills Ltd. applied such user test t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -assessee is not pressing for the credit on pre-fabricated building. The same is disallowed. 8. Regarding the appeal filed by the Revenue, we note that the only ground of appeal is that storage tank emerges of immovable property. We find the main issue is to decide the credit of duty paid on HR Steel Plates. No credit is availed on these storage tanks which are fabricated inside the premises of the appellant-assessee. Storage tanks are specifically mentioned in the definition for capital goods under Rule 2(a) of the Cenvat Credit Rules, 2004. Even otherwise, we note that storage tanks are essential capital goods which are used by the manufacturer of excisable goods. HR Steel Plates are basic raw material for fabricating such storage tan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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