9911796707
TMI Blog2008 (5) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... llant. Shri T.C. Raja Dass, SDR, for the Respondent. [Order] - This appeal has been filed against Order-in-Appeal No.15/2007, dated 10-1-2007 passed by the Commissioner of Central Excise (Appeals), Mangalore. 2. Ms. Mona, learned advocate appeared on behalf of the appellants and Shri T.C. Raja Dass, learned SDR represented the Revenue. 3. I heard both sides. The issue relates to availment of Cenvat credit on Steel plates and strips. The appellants are manufacturers of alumina hybrid, calcined alumina, carbon electrode paste, cathode carbon blocks and vanadium sludge. Revenue proceeded against the appellants on the ground that steel plates and strips on which Cenvat credit had been availed by the appellants cannot be considered as access ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a large number of case-laws in which the Tribunals have held that steel plates and strips used in the manufacture of capital goods which are further used in the factory for manufacturing final products are entitled for credit as capital goods. 5. The learned departmental representative stated that iii view of the observation of the Hon'ble Supreme Court in the case of M/s, Vikram Cement's case, the credit cannot be allowed. 6. The contention of the Revenue is that in terms of Rule 2 of Cenvat Credit Rules, the capital goods are defined as follows: (i) All goods falling under Chapters 82, 84, 85, 90 and Heading Nos. 6802, 6801.10 of the First Schedule to the Tariff Act. (ii) Pollution control equipment. (iii) Components, spares and acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the definition of capital goods. Therefore, even if the impugned goods cannot be treated as capital goods for cenvat purposes, they can be treated as 'input' and therefore, credit is not deniable. I find that in Para 6 of the show cause notice of the Assistant Commissioner, an observation has been made that the input credit is not admissible as the capital goods so produced are exempted under Notification No. 67/95. This observation of the Assistant Commissioner is wrong. Exemption Notification No. 67/95 is an exemption in respect of the capital goods fabricated using the steel plates and strips. In terms of the Explanation 2, the steel plates and strips should be considered as inputs. Therefore, the fact that the steel tank so manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
