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2016 (6) TMI 606 - AT - Central ExciseCredit on MS items used for repair and maintenance of storage tanks used for storing petroleum products - Held that:- The storage tanks are used for storing petroleum products. It is compulsory for the appellant to have these tanks kept under the earth as safety measure. This does not make a storage tank a civil structure. The product that is stored in these tanks are extremely dangerous and there are statutory norms to be followed while transferring, carrying or storing petroleum products. The appellant has to abide by standards/guidelines issued by Oil Industry & Safety Directorate. The product manufactured has to be stored in metallic tanks, which are kept under the earth and these tanks have to be periodically repaired and maintained to prevent seepage. Hence repair and maintenance of storage tanks can be said to be integral part of manufacturing process carried out by appellant. Thus the credit on steel items used for repair and maintenance of storage tanks is admissible. - Decided in favour of assessee
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