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2013 (5) TMI 137 - CESTAT NEW DELHICenvat credit denied - GI structures & catenary plate - Held that:- There is no dispute that although the boiler as well as turbine fall under chapter heading 84 and are covered by the definition of capital goods, and that the definition of capital goods in addition to the goods falling under Chapter 82, 84, 85, 90 etc., also covers as the component, spares and accessories of these goods. It is settled law that components and accessories of the capital goods can be of any heading not necessary of the tariff headings specified in the definition of capital goods. Therefore, even if the items falling under Chapter 7308 are used as part of the machinery falling under chapter 84, the same would have to be treated as capital goods. Since in this case, the GI structure is used as part of the turbine, the denial of credit in respect of this item on the ground that the same is not covered by the definition of capital goods is not correct. Also denial of cenvat credit in respect of catenary plate which, admittedly, has been used as part of the boiler is also not correct.In favour of assessee. Structural part of the boiler - Held that:- Same have been used as supporting structure for Boiler. The structural part to be used as support for Boiler had been fabricated in some other factory and had been brought to this factory where the same has been erected. Since in the facts of this case, the structural part, though supporting structure, is more like a component of the boiler, the denial of cenvat credit in respect of the same would not be correct. In favour of assessee.
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