TMI Blog2017 (3) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... Sulekha Beevi, C.S.,] The above appeal is filed against the order passed by commissioner (Appeals) who disallowed the credit on MS items. The appellants were issued a Show Cause Notice alleging irregular availment of credit on MS Angles Channels, Beams under the category of inputs After due process of law, the original authority confirmed an amount of ₹ 19,99,454/- along with interest and imposed equal amount of penalty. In appeal, the Commissioner (appeals) upheld the same. Hence this appeal. 2. The appellant is engaged in the manufacture of Sugar Molasses, Ethanol, Rectified Spirit and Fuel Oil falling under Chapter sub heading No.17011190, 17031000, 22072000, 22072000 and 38249090 of the Central Excise Tariff Act, 1985, resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not covered under the definition of capital goods. It has been brought to the notice of the authorities that the appellant have taken input credit on the MS items, however, the same was not at all considered at any stage by the original authority as well as by appellate authorities. 6. Further, that the appellant availed input credit on MS items during the period from 2007 to December, 2007 and during March, 2009 and the definition input at that relevant point of time reads as under: Rule 2(k) input means- i) Ail goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that such Storage Tank should fall under Chapter 84 Chapter 85 Chapter 90 etc., 9. Against this, the Ld. AR, reiterated the findings in the impugned order. He submitted that the appellants had not disclosed the fabrication/manufacturing of Molasses Tank in their ER-1 Returns and therefore the credit has been rightly denied. 10. I have heard the submissions made before me. The period involved is prior 07.07.2009. The specific case of the appellant is that the MS items were used for fabrication of Storage Tank for Molasses. The said tanks fall under the definition of capital goods. Therefore, the use of MS items for fabrication of capital goods namely Storage Tank and the credit availed by the appellant under the category of inputs is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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