2018 (4) TMI 1227

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..... l items involved in the manufacturing process - credit allowed. Conveyor belts - Held that: - conveyor belts are essential in the manufacturing process - it is the use of the product which will determine the eligibility rather than the nature of the product as it enters the factory. It is nobody's case that the conveyor belt is not connected to manufacturing process - credit allowed. Steel tubes, angles and flats - Held that: - the steel tubes, angles and flats on which credit was availed were used to create a steel cover around welding machine for industrial safety. The operation of welding machine is connected to such safety measure - credit allowed. Appeal allowed - decided in favor of appellant.
Ms. Sulekha Beevi C.S., Member (Judici .....

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..... fication under Chapter 73 due to their understanding. In any case, the conveyor belt are specifically identified capital goods and they are essential in the manufacturing process. In the alternative this can be considered as inputs which are used in or in relation to the manufacture of final products. Regarding credit taken on steel tubes, angles, flats etc. it is submitted that these are used for fabricating the steel cover around high power welding machines as a safety measure. This is an essential industrial requirement. Accordingly, such fabrications are part of capital machinery. 5. We have heard both sides. 6. We have perused the photographs and examined the actual usage of various items credit on which was denied by the original au .....

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..... the supplier categorized it under Chapter 73. Even if the iron and steel items were made into conveyor belt inside the appellants premises, still such items will be eligible in view of the use to which they are put to. Similarly, we note that the steel tubes, angles and flats on which credit was availed were used to create a steel cover around welding machine for industrial safety. The operation of welding machine is connected to such safety measure. We find no reason for denial of credit for such essential fabrication inside the factory premises. 8. In view of the above discussion and analysis, we note that the denial of credit on these items are not justified. Accordingly, we set aside the impugned order and allow the appeal with conseq .....

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