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2022 (9) TMI 850 - AT - Central ExciseReversal of CENVAT Credit on inputs and input services - erection and commissioning services - input services used for setting up of factory - dumpers used for transportation of ore from captive mines to the plant - falling under Chapter 87 and thus, excluded from the definition of the term ‘capital goods’ under Rule 2(a)(A) of CCR or not - welding electrodes and MS Rolla Deck Sheet used for fabrication-erection and for repairs of machinery. CENVAT Credit - input services used for setting up of the factory - HELD THAT:- This issue is already settled in favour of the appellant by a co-ordinate bench of this Tribunal in BHARATHI CEMENT CORPORATION PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CUSTOMS & SERVICE TAX AND (VICE-VERSA) [2017 (7) TMI 679 - CESTAT HYDERABAD], where it was held that the services, in question, used for setting up of factory have to be treated as input service and would be eligible for Cenvat credit, as the factory has been setup for manufacture of final products which are liable to Central Excise duty. Therefore denial of Cenvat credit, in question, is contrary to the provisions of Rule 2(l) of Cenvat Credit Rules, 2004. CENVAT credit on dumpers - HELD THAT:- These are part of the material handling system, as such dumpers are used by the appellant for transfering the raw material (limestone) from the pit head to the crusher. The issue stands covered in favour of the appellant by Precedent order of this Tribunal in M/S. ADITYA CEMENT VERSUS CCE, JAIPUR-II [2016 (9) TMI 1127 - CESTAT NEW DELHI], where it was held that dumpers are material handling equipments used for transportation of limestone from mining area to the crusher which is further used for the manufacture of cement; therefore, the dumpers are to be treated as used in or in relation to the manufacture of final products and thus, qualifies as an “input”. Availment of cenvat credit - Capital goods - welding electrodes - welding machine - MS rolla dalk profile sheet - HELD THAT:- The CENVAT credit on these items is allowable as inputs under Rule 2(k) as without the use of welding electrodes and welding machine no fabrication and repair and maintenance of plant and machinery is possible. In absence of such inputs, production of dutiable output is not possible. Thus, there is indirect use of these items in the manufacture of dutiable output. Similarly, the profile sheets are also required for use in fabrication of plant and machinery, for setting up of the factory. Thus the credit is available. Appeal allowed - decided in favor of appellant.
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