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2018 (4) TMI 1162 - AT - Central ExciseCENVAT credit - capital goods - steel items such as angles, channels, sheets, plates, etc. for fabrication and erection of various capital goods, like boiler supporting structure, platform, stairs, grating etc. - Held that: - the cenvat credit on iron and steel material used in fabrication of supporting structure for capital goods are allowable as has been held by the Tribunal in various decisions - reliance placed in the case of M/s. Singhal Enterprises Private Limited Versus The Commissioner Customs & Central Excise, Raipur [2016 (9) TMI 682 - CESTAT NEW DELHI], where it was held that applying the “User Test” to the facts in hand, we have no hesitation in holding that the structural items used in the fabrication of support structures would fall within the ambit of ‘Capital Goods’ as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat Credit - credit allowed. CENVAT credit - fabrication of supporting structure with the bill of material of goods prepared at the time of planning the installation of capital goods - Held that: - the assessee has produced the Chartered Engineer’s Certificate in which the details of actual usage of the iron and steel structural items in the fabrication of supporting structure of capital goods has been given - credit on the basis of Chartered Engineer’s certificate will be allowable to the appellant but not on the basis of tentative bill prepared - credit allowed. Penalty u/s 11AC - Held that: - when the entire demand of cenvat credit now stands set aside, there is no justification for imposition of any penalty under section 11 AC - penalty set aside. Appeal allowed - decided in favor of appellant.
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