9911796707
TMI Blog2024 (8) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... t, on payment, which has become the property of the appellant and the same has been handed over by Tata to L T for installation and commissioning. L T paid Service Tax on the said activity without taking CENVAT Credit on inputs used in providing the said service. In these circumstances, the goods remain the property of the appellant namely, Tata during the impugned period. The appellant-Tata has correctly taken CENVAT Credit on the capital goods procured by them which have been ultimately used in the manufacture of final products. In these circumstances, the denial of CENVAT Credit is not sustainable. Penalty - HELD THAT:- As the appellant-Tata has taken CENVAT Credit correctly, it is held that no penalty is imposable on the appellants. Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, testing, commissioning, etc., and civil structural steel work. 2.1. In view of these contracts / agreements, the appellants placed purchase orders to the appellant namely, M/s. Larsen and Toubro Limited (hereinafter referred to as L T ), who supplied equipment / plant and machinery to Tata, which duly qualified as capital goods for Tata, the property wherein was transferred to the appellant/Tata at its warehouse. Such goods were either manufactured and supplied directly by L T to Tata or were procured from other manufacturers and consigned directly to Tata's premises. Accordingly, Tata took CENVAT Credit on the said goods as capital goods. 2.2. Further, the said goods were provided by Tata to L T on requisition during erection and co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the issue is no longer res integra inasmuch as it is settled that CENVAT Credit cannot be denied to the assessee solely for the reason that availment of CENVAT Credit on such goods is restricted to works contractor who installs such goods in the assessee s premises. To support this contention, he relied on the decision of Commissioner of C.Ex. v. Gujrat Ambuja Cement Ltd. [2010 (256) E.L.T. 356 (H.P.)] which has been affirmed by the Hon. Apex Court in the case of Commissioner of C.Ex.-I, Chandigarh v. Ambuja Cement Ltd. [2022 (9) TMI 1456 Supreme Court]. He also relied on the decisions of Commissioner, Central Excise CGST, Udaipur v. Rajasthan Spinning Weaving Mills (RWSM) Ltd. [2023 (5) TMI 650 CESTAT, New Delhi] and Commissioner of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... radesh in the case of Commissioner of C.Ex. v. Gujrat Ambuja Cement Ltd. [2010 (256) E.L.T. 356 (H.P.)]. 8.2. We also take note of the fact that said capital goods which were installed in the factory of the appellant have been used for manufacturing of their final product. The said view was taken by the Tribunal in the case of Rajasthan Spinning Weaving Mills (RWSM) Ltd. [2023 (5) TMI 650 CESTAT, New Delhi] wherein the Tribunal observed as under: - 6. We have gone through the above referred decisions and also the latest decision of the Apex Court in CCE, Chandigarh Vs. Ambuja Cement vide order dated 8.09.2022 in CA No. 3005 of 2011, inter-alia, observing that DGPP sets on which modvat credit is allowed is part and parcel of the factory of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods were assembled in the factory through a contractor and the capital goods so manufactured are used in the manufacture of final products for which the capital goods is entitled to the credit on the parts of capital goods. In view of the above decision, the appeal is dismissed. Which has been affirmed by the Hon ble Punjab and Haryana High Court as reported in 2010 (255) E.L.T. 196 (P H): As Duty had been paid on the inputs and the parts, therefore, the respondents were entitled to modvat credit. It is pertinent to mention here that M/s. Haden Josts Engineering India Ltd had not taken any modvat credit and the modvat credits were taken by the respondent M/s. International Tractors Ltd It is thus, clear that one of the parties was entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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