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2016 (8) TMI 536 - AT - Central ExciseCenvat credit - allowability - availed on MS angles, channels, beams, plates etc. - used for fabrication of technological structures bridges, supporting to the equipments like reactors, distillation column, heat exchangers, receivers in utility and production blocks, pipe line systems etc. - Held that:- I am not able to agree with the view of the Commissioner that the MS items used as support structure for capital goods/parts/components/ are not eligible for Cenvat credit. The use of MS items to manufacture /fabricate capital goods/parts/ accessories has been settled in the cases of Rajasthan Spinning and Weaving Mills and India Cements. While considering the issue the Hon’ble Courts have taken the view that the machineries in a factory have to be properly supported and connected. Such structural supports are necessary for the machines to make them function without vibration or movement. In Divis Laboratories Ltd Vs CCE Viskahpatnam [2006 (1) TMI 312 - CESTAT, BANGALORE] it was held that the items like angles channels, beams pipes tubes etc. used as parts of technological structures which support a reaction vessel or used in particular equipment in the manufacture of bulk drugs was admissible. Cenvat credit - allowability - items for making canteen sheds - Held that:- claim of credit on MS items used for making canteen sheds, is not admissible for the reasons that canteen sheds do not qualify as capital goods as provided in Cenvat Credit Rules, 2004. It then becomes necessary to quantify the amount of impugned item used in the manufacture of canteen shed and shall furnish evidence regarding the quantity of impugned items used in the construction of canteen shed and is also liable to reverse the credit availed on manufacture of canteen shed. Therefore, the credit on MS items used by the appellant can be allowed except for the use in the making of canteen shed. - Decided partly in favour of appellant
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