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2018 (11) TMI 222 - AT - Central ExciseCENVAT Credit - capital goods - steel items viz. HR Coils, Sheets, Joists, MS Channels, MS Flats, MS Angles, etc., in the Sugar Plant Machinery to erect Molasses Tank-II - denial of credit on the ground that appellant had not produced any authentic record to prove that the steel items were meant only for the construction of Molasses Tank and not otherwise - Held that:- Undoubtedly, the courts have held that the HR Coils, Sheets, Joists, MS Channels, MS Flats, MS Angles, etc., used in the fabrication of Capital Goods are eligible for CENVAT Credit. It is also an admitted position of law that “Capital Goods” as defined under Rule 2(a) ibid. includes even a storage tank also. In this view of the matter, the only exercise that needs to be undertaken by the appellant is to establish that the above steel items were in fact used in the construction/erection of Molasses Tank-II. There are no finding or observation on any of the documents including the certificate of the Chartered Engineer. It is also a fact that in the very foundation, i.e., Show Cause Notice itself, the adjudicating authority had assumed that the above steel items were used in the fabrication of Molasses Tank. Thus, the certificate of Chartered Engineer would only support this. The matter needs to be re-looked into by the adjudicating authority who shall give a finding after considering all such necessary documents including the certificate - appeal allowed by way of remand.
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