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2018 (11) TMI 967 - AT - Central ExciseCENVAT Credit - inputs/capital goods - cement and various structural articles used by the appellant - construction of foundation of machinery - Held that:- The decision in the case of Vandana Global [2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)] relied solely to admissibility of credit on angles, joists, beams, channels, bars, flats, etc. which go into fabrication of construction for support of the capital goods. The High Court of Chhattisgarh observed that the credit on such items would be admissible. Similar logic was followed by Hon’ble High Court of Gujarat in the case of Mundra Ports and Special Economic Zone [2015 (5) TMI 663 - GUJARAT HIGH COURT] while allowing credit on cement and steel used in the construction of jetties. Jetty is used to provide port service and under that circumstance, it is a capital good directly used for the provision of services. The Show Cause Notice essentially charges that these goods are used for construction and therefore, cannot be considered as capital goods. The claim of the credit needs to be tested as per the user test prescribed in the decision of the Hon’ble Apex Court in the case of Jawahar Mills [2001 (7) TMI 118 - SUPREME COURT OF INDIA] - the issue is remanded to original adjudicating authorities to examine the exact use of the goods and test the admissibility of credit. Appeal allowed by way of remand.
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