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2018 (7) TMI 987 - AT - Central ExciseCENVAT Credit - inputs/capital goods - iron and steel items - whether the iron and steel items (angle, channel, joist, bar plate sheet and coil) can clearly fall under the definition of capital goods and the inputs? - Held that:- The Sub Clause (i) of Rule 2a of CCR makes it very clear that any item other than those falling under Chapters 82, 84, 85 and 90 will not be a capital good. Apparently and admittedly the impugned iron and steel items are falling under Chapter 72. For these items to still fall under the aforesaid definition, it is for the appellant to show that these items have been used as components, spares and accessories of the goods falling under the above mentioned Chapters, i.e. 82, 84, 85 & 90 - As is very much apparent from the terminology used, the items are used purely for the construction activity - there is nothing on record as may show that these items have been used in such a structure which is used in or integrally connected with the process of actual manufacture of the final product - credit rightly denied. Penalty - Held that:- The Act of the appellant has rightly been held as suppression of relevant facts - Penalty upheld. The iron and steel items do not fall either under the definition of capital goods or under definition of inputs under Section 2(a) and 2(k) of the Cenvat Credit Rules, 2004 - Credit rightly denied - penalty upheld - appeal dismissed - decided in favor of appellant.
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