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2013 (5) TMI 241 - CESTAT NEW DELHICenvat credit on H.P. Plates, Angles, Channels treated as items of capital goods - denial of claim as per the dept the mentioned items were neither capital goods nor inputs - whether various steel items used in fabrication of tanks embedded to earth tanks would be eligible for cenvat credit - Held that:- As regards jigs, the same is specifically covered by the definition of capital goods as given in Rule 2(a) of Cenvat Credit Rules and, therefore, the steel items used for fabrication of jigs would be eligible for cenvat credit as inputs. Gantry rails has to be treated as part of the EOT Crane system, which covered by Chapter 84 and hence is capital goods. As decided in CCE Raipur Vs. Ambuja Cement Eastern Ltd. (2003 (10) TMI 589 - CESTAT, NEW DELHI) steel items used for fabrication of gantry rails on which EOT cranes mines would be eligible for cenvat credit as inputs, as the definition of inputs also includes the items used for fabrication of capital goods used in the factory. Commissioner (Appeals)’s order disallowing the cenvat credit in respect of steel items used for embedded to earth tanks is upheld as from the way Rule 2 (a) is worded, it is absolutely clear that the various items mentioned in this Rule has to be goods i.e. movable properties. Since the impugned order does not mention the separate account of cenvat credit in respect of the steel items used for storage tanks and steel items used for gantry rails and jigs, for quantification of the cenvat credit demand, the matter is to be remanded. Penalty levy is deleted as the issue involved relates to interpretation of the provisions of Cenvat credit Rules on which there are and have been contradictory judgements, imposition of equal penalty is not called for.
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