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TMI Blog2010 (7) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... at credit on various items. The present dispute relates to denial of credit of Rs. 3,61,947/- on the steel plates, angles and channels, which were used for the repairs, upkeep and maintenance of machines, machinery equipment and structural, and denial of credit of Rs. 35,227/- on clean flo and chemicals which were used in the cooling tower attachment to the DG sets for treatment of water and for prevention of formation of algae. Penalty of equal amount was imposed by the original authority which stands reduced to Rs. 50,000/- by the Commissioner (Appeals). 4.1 Learned Advocate for the appellants, drawing attention to the relevant portion of the show cause notice, submits that in respect of steel plates, angles and channels, the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; Whether the term "capital goods" can include plant, structures embedded to earth? (b) Whether the goods like angles, joists, beam, channels, bars, flats which go into fabrication of such structures can be treated as 'inputs' in relation to their final products as inputs for capital goods, or none of the above? (c) Whether the credit can be allowed in respect of goods like angles, joists, beam, channels, bars, flats which go into fabrication of such structures and plant? Following are the salient features of the decision of the Larger Bench :- (a) It disapproved the decision of the Tribunal in the case of Bhushan Steel and Strips Ltd. v. CCE, Raigad [2008 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructures are neither inputs nor components, spares and accessories of machinery, nor have they been listed for such inclusion in the definition of capital goods. With the above findings and observations, the question referred to Larger Bench were answered as follows : "49.In the light of the foregoing findings, we answer the questions referred to the Larger Bench as follows :- (a) The terms "capital goods" has been defined in the Cenvat Credit Rules, which in turn have been framed under the rule making powers conferred under Section 37(2) of the Act. The said Section refers to credit of duty paid on goods used in, or in relation to the manufacture of excisable goods. Hence, 'capital goods' defined in the Cenvat C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants in the reply, there is a clear finding of the original authority that these items are used for maintenance or for fabrication of the structures. Under these circumstances, I do not find any justification for remanding the matter to the original authority, I hold that the appellants are not eligible for a credit of Rs. 3,61,947/- relating to these items. The eligibility of credit of duty on clean flo and chemicals is covered in favour of the assessee by the decision of the Hon'ble High Court of Punjab and Haryana. As a result, the demand of Rs. 35,227/- requires to be set aside. 11. The dispute relating to eligibility of credit on plates, channels, angles, were subject of differing interpretations and plea of the learned Advoc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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