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2012 (9) TMI 709 - KARNATAKA HIGH COURTDisallownace of Cenvat credit - no storage tank included in the definition of capital goods - Held that:- Though in the definition of Rule 57-Q the storage tank was not included, it is clear from the afore-said definition that the tubes, pipes and fittings thereof used in the factory were included in the definition of capital goods. The storage tank has been held to be a component to the main machinery namely, boiler and the benefit is extended to the inputs used in the construction of the storage tank though it is also embedded to the land. On the same reasoning the assessing authority ought to have extended the benefit to the syrup and molasses storage tank also, as they are byproducts in the course of manufacturing activity which are also excisable at the time of selling the same to the assessee. As the assessing authority has himself extended the benefit to storage tank storing water as a component to main machinery namely, boiler, he ought to have extended the benefit to the storage tanks which are also part of the factory premises, in which the byproducts are stored and thereafter sold as a finished product. In that view of the matter,no justification to interfere with the orders passed by the appellate authority - No substantial question of law arises for consideration - in favour of assessee.
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