9911796707
TMI Blog2024 (11) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... king, in as much as, the said goods form part of ship and input service under Rule 2 (a) of CCR, 2004 used in process of manufacture of final excisable product in breaking of ship. 2. Shri R.K Agarwal, Learned Superintendent (AR) appearing on behalf of the Revenue appellant reiterates the grounds of appeal. He submits that the appellate authority has wrongly relied upon the judgment of Hon'ble Gujarat High Court in the case of Priya Holdings vs. Commissioner of Customs Preventive, Jamnagar - 2013 (288) ELT 347 (Guj.) for the reason that the said judgement is not on the issue of cenvat credit. Therefore, the entire order is based on such judgment is not legal and correct and the same deserves to be set aside. 3. Ms. Dimple Gohil, Learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is eligible for the cenvat credit against the ship breaking and excise duty paid thereon. We find that the Commissioner (Appeals) has relied upon the case of Priya Holding (Supra) wherein it was held that the fuel oil lying in the engine room is part and parcel of the ship which is imported for breaking which means the fuel oil cannot be given different treatment than the entire ship. Consequently, for the purpose of cenvat also no discrimination can be made between the entire ship and the bunker lying in the engine room. Therefore, the case of Priya Blue holding directly supports the case of the respondent. Moreover, on a very identical issue, the tribunal in the case of Navyug Ship Breaking Co. (Supra) passed the following order:- "5. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods and materials by breaking ship. However, as can be observed from the appeal memo itself fuel and oils for the use of ship, found as store in the ship when brought for breaking purposes are inevitably required to be removed for efficient and safe operation of breaking of ship. This position is also specifically admitted in the appeal memo in para 3.4.4. In this background, it is clear that Fuel and Oils are by- product that are inevitably required to be removed from the ship in the course of commencing the activity of breaking the ship and if that be so, there is no reason for denial of cenvat credit of CVD paid on any part of the Ship including its stores viz. fuel and oil on the ground that they do not form part and parcel of the ship ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. It has been rightly held by Learned Commissioner (Appeals) that removal of fuel and oil is the initiation of ship breaking activity and cannot be said as separate activity. Further, Learned Commissioner (Appeals) has rightly held that in view of para 6 of the circular no. 1014/2/2016-CX., dated 1-2-2016, that cenvat credit of CVD paid on fuel & oils cannot be denied to the Respondent. 06. In view of foregaing discussion, impugned order is required to be upheld and appeal of department is liable to be dismissed. Accordingly, we uphold the impugned order and dismiss the revenue's appeal. CO also stand disposed of. " 4.1 From the above decision, the issue in hand has already been decided in the favour of the assessee. Therefore, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
