Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 221 - CESTAT MUMBAICENVAT credit - capital goods - storage system installed in factory - Mobile Compactor Bin Storage System - FRP Ladder Trays - Elbows - Tunneller - Structrual Steel Rolled/ Structurals - Impeller Spares - Switch Board - Held that: - in respect of storage system installed in factory, It is seen that the appellants have not countered the legal argument in the impugned order that the said goods did not fall under the definition of capital good/ inputs appearing in the Cenvat Credit Rules. While theoretically it can be considered the storage system Mezzanine floor would be capital goods but for the purpose of Cenvat Credit Rules the definition is very clear and the said goods do not fall under the definition of input/ capital goods - credit not allowed. Mobile Compactor Bin Storage System - Held that: - In normal parlance, the storage bin would be considered as capital goods but for cenvat credit goods have to fall under the definition of capital goods as it appears in the Cenvat Credit Rules 2004. The instant case is classifiable under chapter 94 and is thus clearly not covered under the definition of capital goods. Since the appellants have not countered the regarding the goods not fall under the said definition of the Cenvat Credit Rules the credit of the same cannot be allowed. FRP Ladder Trays - Held that: - the same are used for laying electric cable in the refinery. Most of the equipment of the refinery would be classifiable under chapter 84 and 85 of CET and thus would be covered under the definition of capital goods. The electric system would definitely be covered as components of such refinery machinery - credit allowed. Elbows - Held that: - tube pipes are specifically covered under the definition of capital goods. The credit of the elbows therefore cannot be denied. Tunneller - Held that: - Tunneller is used to connect the tanks to the distributed control system and control room to monitor the activity in the tank. It provides an easy reliable and secure way to networked computers. The said goods would fall under the accessories to the control system. Thus the credit of the same cannot be denied. Structurals used for repair and maintenance of tanks of the refinery - Held that: - the definition of capital goods specifically includes storage tanks. However, the items used for construction of tanks are not covered under the definition of capital goods. Tank and refinery being immovable property the credit of the structural steel for repair for tank also cannot therefore be allowed as inputs. Impeller spares, switch board - Held that: - both fall under chapter 84 and 85 of CET and thus are covered in the definition of capital goods. The credit of same cannot be denied. Penalty - Held that: - the issue under dispute are in the nature of credits on which the appellants could have had bonafide belief. In view of above, penalty under Section 11AC is not justified. The issue regarding the recovery of interest is remanded to the original adjudicating authority to determine after examining the facts regarding utilisation of the said disputed credit or otherwise. Decided partly in favor of assessee, partly against assessee and part matter on remand.
|