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2015 (2) TMI 422 - CESTAT NEW DELHIDenial of CENVAT Credit - items used as supporting structures for machinery - Held that:- The MS angles, channels, plates, beams etc., falling under chapter 73 of the tariff are not covered by the definition of capital goods as given in Rule 2(a) of the Cenvat Credit Rules, 2004, and hence, the same would not be eligible for cenvat credit as capital goods. These, items would be eligible for Cenvat credit only as input, as the definition of input, as given in Rule 2(k) also covers the goods used for manufacture of capital goods which are used in the factory for production. However, the items which are used as foundation or supporting structures of the machinery are excluded from the definition of input. The Departments contention is that the entire disputed quantity of structural steel items has been used as foundation or as supporting structures of the machinery, while, the appellants contention, supported by the Chartered Engineers Certificate, is that the entire quantity of MS Angles, channels, beams, plates etc. has been used for fabrication of various items of capital goods and hence, would be eligible for Cenvat credit. However, on going through the chartered engineers certificate, we find out that it simply lists out the various items of plant and machinery which have been fabricated, but the drawings of the items fabricated and the quantity used is not indicated. There is merit in the appellants plea regarding limitation, as during the period of dispute, there were conflicting judgments of the Tribunal on the issue of admissibility of Cenvat credit of the iron & steel items used in fabrication of supporting structure or foundation of the machinery, till the issue was finally decided in favour of the Revenue by larger bench judgment of the Tribunal in the case of Vandana Global Ltd.(2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)) and, therefore, longer limitation period under proviso to section 11A cannot be applied. According to the appellant the Cenvat credit demand of only ₹ 28 Lakh would be within time, even if, the Departments allegation regarding the usage of the iron and steel items for foundation or supporting structure of the machinery is accepted in toto and the Cenvat credit in respect of the same is held as inadmissible. - Partial stay granted.
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