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2011 (11) TMI 544 - CESTAT NEW DELHIDisallowance of CENVAT Credit - Storage tanks - Goods used for non-manufacturing purposes - Held that:- So far as the eligibility of Cenvat credit in respect of the M.S. Beams, M.S. Joist and Channels used as supporting structure/or for sheds is concerned, since these items had been used for making structures fixed to the earth, in view of the judgement of the Tribunal in the case of Vandana Global Ltd. (2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)) the same would not be eligible for Cenvat credit as the supporting structures cannot be treated as capital goods. As regards water tanks, the definition of capital goods specifically covers the tanks. However, it is the Department’s case that these tanks are used for storage of water for non-manufacturing purposes. From the definition of capital goods in Rule 2(a) of Cenvat Credit Rules, 2004, it is clear that the items covered by the definition are required to be used in the factory and the purpose of their use is not relevant. Therefore, so long as the tanks are used within the factory, the same would be covered by the definition of capital goods irrespective of their uses. Therefore, the Commissioner (Appeals)’s order permitting the Cenvat credit in respect of the storage tanks is correct and is accordingly upheld - while the Commissioner (Appeals)’s order upholding allowing of Cenvat credit in respect of the storage tanks is upheld, the portion of the order allowing Cenvat credit in respect of M.S. Beams, M.S. Joists and Channels used for supporting structures is set aside - Decided in favour of Revenue.
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