TMI Blog2015 (9) TMI 1485X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery and hence covered under the definition of capital goods. Further, the Tribunal in the case of Shriram Hi-tech Steel & Power Ltd. vs. CCE, Raipur [2014 (10) TMI 57 - CESTAT NEW DELHI] has held that that MS rounds, MS sheets and CR coils used for making of various machines shall be eligible for CENVAT benefit. In the case of CCE, Raipur Vs. Hi-Tech Power & Steel Ltd. [2015 (9) TMI 1374 - CESTAT NEW DELHI] the Tribunal has held that the steel items used in fabrication of coal ground hopper, iron ore ground hopper, coal crusher house, conveyer system, stock house, after burning chamber, kiln coller transformer house, etc. are eligible for CENVAT benefit under the head input definition in Rule 2(k) of CENVAT Credit Rules, 2004. The dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same as inputs. Taking of CENVAT credit was also denied by the Central Excise Department on the ground that the disputed items are neither covered under the definition of capital goods or inputs. The Show Cause Notices issued in this regard culminated in the adjudication order dated 05.02.2010, wherein the CENVAT credit of the above mentioned amounts were disallowed and ordered for recovery along with interest Further, equal amount of penalties were imposed on the respondent. In appeal, the Id. Commissioner (Appeals) vide the impugned order has allowed the appeal of the respondent holding that the availment of CENVAT credit on the disputed goods is legal and proper, as the said goods are conforming to the definition of input and capital goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their help it is very difficult for any machines to run smoothly giving the desired production or result and thus these items are always linked with machinery used in the production of final products. Once it IS established that these items are essential for production, smooth running, greater efficiency and better result becoming an essential supplement to plant and machinery for use of manufacturing activities and thus an integral part of process with which the primary machines are engaged. I do not find any reason to deny the benefit of Cenvat on these items and hold there is no impediment for the goods in question qualifying as inputs / capital goods for Cenvat Credit. 5. The issue, regarding eligibility of CENVAT credit on the di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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