9911796707
TMI Blog2023 (6) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant entered into various agreements for fabrication of various tanks, which were used for processing of goods. For fabrication of these tanks, the appellant procured iron and steel items, such as, angles, channels, plates, semi-rolled plates, chequered coils & joists, M.S.beams, M.S.Flats H.R.Sheets, M.S.Bars etc. to be used for fabrication of the said tanks. So, the appellant availed credit of duty paid on the iron and steel items, which were used in fabrication of the above mentioned tanks. The appellant did not avail cenvat credit on TMT Bars, Cement, which were used for foundation of the plant. 2.1 The Revenue is of the view that the tanks fabricated are not goods as they are immovable in nature and are not capital goods as defined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lgaum reported in 2008 (230) ELT 649 (T) affirmed by the Karnataka High Court in 2012 (286) ELT 503 (Kar.). Therefore, these tanks are capital goods and as per Explanation to Rule 2 (A) of the Cenvat Credit Rules, 2004, the tanks are capital goods. He further submitted that the iron and steel items,which are in dispute are inputs used in or in relation to the manufacture of dutiable final products. It is the submission that these steel items are used for fabrication of tanks, which were used and processing of final products, therefore, the items used are eligible for cenvat credit as inputs. 4. On the other hand, the ld.A.R. for the Revenue reiterated the findings of the ld.Commissioner. 5. Heard the parties and considered the submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of final product. By virtue of explanation to goods used in the manufacturer of capital goods which are further used in the factory of the manufacture also falls withi the definition of input. In 2009, this explanation has been amended to the following effect: "but shall not include cement, angles, channels Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated Bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods". 7. From the above, it follows that storage tanks irrespective of immovable or moveable, are considered as capital goods. The tanks used for processing the goods at intermediate stage. We find that on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld utilized as a cenvant credit by the assessee notwithstanding the fact that the storage tank is an immovable property. Therefore, the appellant authority committed a serious error firstly in holding that the storage tank is an immovable property and secondly, on the ground that it cannot be bought and sold in the marked, the criteria which is totally unwarranted under the circumstances. Therefore, the Tribunal was justified in setting-aside the said order and holding that the assessee is entitled to the benefit." 8. We find that these iron and steel items have been used for manufacturing/processing of final products. 9. In that circumstances, any iron and steel items used for fabrication of those tanks are entitled for cenvat credit as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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