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2016 (6) TMI 274 - AT - Central ExciseCenvat credit on material like cement, angles, channels, electrodes, CTD Bars and H.R. Plates. Ld. - denial of claim on the ground that all these materials are for general purpose, structural items used for carrying out civil engineering work and therefore could not be treated as accessories of machines installed in the factory - extended period of limitation invoked - Held that:- In the present case channel, angles, H.R. Plates, welding electrodes were used for fabrication/manufacture of parts or furnace which is capital goods, credit on these items are admissible. As regard credit on cement and CTD Bars, these items were neither used as capital goods nor as input for manufacture of Capital goods for the reason that Cement and CTD bars were admittedly used for making civil structure i.e. foundation for erection or installation of furnace. Though it is made for erection or installation of machinery but it is civil construction like building construction therefore credit on CTD bar and cement is not admissible. As regard limitation in respect of credit taken on CTD bars and Cement, since appellant have not disclosed the fact about use of these material to the department, it amounts to suppression of facts therefore the extended period is rightly invoked. In case of Commissioner of Customs and Central Excise, Ghaziabad Vs. M/s. Rathi Steel and Power Ltd [2015 (5) TMI 168 - ALLAHABAD HIGH COURT] held that there is willful suppression of material fact by the assessee as well as contravention of the provisions of the Act and rules. The fact of the said judgment are more or less similar to the facts of the present case therefore Ld. lower authority rightly invoked the extended period. Hence the demand of Cenvat credit in respect of CTD bars and Cement is sustainable. In view of the above the credit in respect of Channal, Angles, HR Plates, welding Electrodes are allowed. Credit on CTD bars and Cement is disallowed. Adjudicating authority shall re-quantify the demand and penalty and interest commensurate to re-quantified amount of demand. - Decided in favour of assessee in part.
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