TMI Blog2017 (5) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... e of plant and machinery is eligible for credit - the Hon’ble Supreme Court in the case of CCE vs. India Cement [2011 (8) TMI 399 - MADRAS HIGH COURT] held that steel plates and MS channels used in the fabrication of channels would fall within the ambit of capital goods - credit allowed - decided in favor of assessee. - E/26252, 26527- 26528/2013-SM - Final Order No. 20530 / 2017 - Dated:- 24-4-2017 - Shri S. S. Garg, Judicial Member Shri Sunil Kadam, GM (Legal) Shri Rahul Patil, DGM For the Appellant Dr. J. Harish, AR For the Respondent ORDER Per S. S. Garg Appellants have filed these three appeals against different impugned orders passed by the Commissioner (A). Since the issue is more or less identical in all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or for maintenance of various equipments or are used for fabrication of platforms of the equipments or for making the cane carrier/kicker/fibriser/leveller/bagasse in the factory. On the allegation by the Department that the said items are ineligible inputs / capital goods in terms of Rule 2(k) and 2(a)(A)(i) to (vii) of the CENVAT Credit Rules (CCR), 2004, a show-cause notice was issued and after following the due procedure of law, the Assistant Commissioner vide impugned order dated 27.4.2012 held these items as ineligible inputs/capital goods and disallowed the CENVAT credit of ₹ 1,67,774/- under Rule 14 of CCR, 2004 and also imposed a penalty of ₹ 5,000/- under Rule 15. Aggrieved by the said order, the appellant filed appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) ELT 593 (Tri.-Del.) (viii) Mundra Ports Special Economic Zone Ltd. Vs. CCE Cus.: 2015 (39) STR 726 (Guj.) (ix) Surya Alloy Industries Ltd. Vs. UOI: 2014 (305) E.L.T. 47 (Cal.) (x) Simbhaoli Sugars Ltd. vs. CCE, Meerut-II: 2016 (335) ELT 328 (Tri.-All.) 6. Learned representative further submitted that the appellant has furnished the certificate of a Technical Adviser who has seen the usage of these items on the spot and has certified that these equipments are positioned at different levels with the help of structural framework which is part and parcel of these equipments. Further these equipments cannot be separated from the structural framework. On the other hand, if separated and placed (all the equipments) at grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service. Explanation 1. - The light diesel oil, high speed diesel oil or motor spirit, commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment; (iii) components, spares and accessories of the goods specified at (i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; [* * * ] (vii) storage tank, [and] [(viii) motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and their chassis [but including dumpers and tippers],] used - (1) in the factory of the manufacturer of the final products, [***]; or [(1A) outside the factory of the manufacturer of the final products for generation of electricity [or for pumping of water] for captive use within the factory; or] (2) for providing output service; 8.1 In the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rajasthan Spinning Weaving Mills Ltd. (supra), was to the effect that the supporting structure for a machinery could not be considered to be part or accessories of the machinery and, therefore, the steel items used for constructing such supporting structure would not be capital goods for the purpose of CENVAT credit. This view of the Larger Bench is no longer valid as it runs contrary to the subsequent ruling of the Apex Court. 8.3 Similarly, the Karnataka High Court in the case of Alfred Albert India Ltd. reported in 2010 (257) ELT 29 held that the inputs used for repair and maintenance of plant and machinery is eligible for credit. 8.4 Further, in the case of CCE vs. India Cement (supra), the Hon ble High Court of Madras after ..... X X X X Extracts X X X X X X X X Extracts X X X X
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