9911796707
TMI Blog2008 (1) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. Heard both sides and perused the records. 3. The appellants are engaged in the manufacture of Cane Sugar, Molasses and DEA falling under Tariff Headings 17.01, 17.03 and 2204.10 respectively of Central Excise Tariff Act, 1985. 4. The issue involved in the instant appeal is whether Cenvat credit is admissible on M.S. Plate, M.S. Channel, H.R. Sheet, Tor Steel, R.S. Joist, H.R. Coil, CTD Bars, Flat Steel, Shape and Section and H.R. Slide Slitting (all items of Chapter 72) as "capital goods" under Rule 2(b) of Cenvat Credit Rules, 2002. The case relates to the period July, 2003 to August, 2003. The functional uses of the above referred items, as detailed in reply to the SCN by the appellants, are as under : (i) &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plate used in erection Juice Sulphiter, Juice weighing scale, Sugar grader & Hopper. 3. The functional use of the impugned goods would indicate that these are used as components, spares or accessories for repair and maintenance or for manufacture and fabrication of the machineries (falling under Chapter Heading No. 84.38), which in turn are used for the manufacture of sugar and molasses. Therefore, the impugned goods are eligible to the Cenvat credit in terms of Rule 2(b)(iii) of the Cenvat Credit Rules, 2002. I find that the similar items like Plain Plates, Steel Flats, Alloy Steel Bars, Joists and Aluminum Sheets etc. were held to be eligible capital goods for the purpose of availment of Cenvat credit in appellant's own case by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrect because in that case it was held that in the absence of the specific use of the Plain Plates, H.R. Sheets and Angles, such general items cannot be considered as component, spare or accessory of the capital goods. This is not the case here. The appellants have given the details as noted above about the specific uses of the impugned goods, which show that these items are used as component, spare or accessory of the machinery and hence are eligible to the Cenvat credit in terms of Rule 2(b)(iii) of Cenvat Credit Rules, 2002. 6. In the light of the above discussions and following the ratio of the case laws cited by the appellants, I hold that the Cenvat credit of Rs. 4,36,075/- is admissible to the appellants. I order accordingly. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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