TMI Blog2012 (9) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... goods used in the manufacturer of capital goods which are further used in the factory of the manufacture also falls within the definition of input - applicants are able to make out a prima facie case for total waiver of service tax which is waived and recovery thereof is stayed during pendency of the appeal - Following decision of COMMISSIONER OF CENTRAL EXCISE, BANGALORE-II Versus SLR STEELS LTD. [2012 (9) TMI 169 - KARNATAKA HIGH COURT ] - Stay granted. - E/147/2012 - Stay Order No. S-1078/KOL/2012 - Dated:- 3-9-2012 - Shri S.K. Gaule and Dr. D.M. Misra, JJ. Shri M.P. Debnath, Advocate, for the Appellant. Shri S. Misra, Addl. Commissioner (AR), for the Respondent. ORDER Heard both sides. 2. The applicant filed this app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for reference of convenience. In order to answer this question, it is necessary to look into the definition of capital goods as contained in Cenvat Credit Rules, 2004 which reads as under : Rule 2(a). Capital goods means : (A) the following goods, namely : (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90. (Heading 6805, grinding wheels and the like, and parts thereof falling under Heading 6804) of the First Schedule to the Excise Tariff Act; (ii) Pollution control equipment (iii) components, spares and accessories of the goods specified at (i) and (ii), (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; and (vii) storage tank, used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under definition (i) and (ii) also are termed as capital goods as per the definition of capital goods under Rule 2A of Cenvat Credit Rules, 2004. The Hon ble High Court of Karnataka in the case of SLR Steels Ltd. (supra) held as under : Therefore, the notification of the Legislature is very clear that it is only the inputs used in the manufacture or construction of capital goods which is construed as input and Cenvat credit is available on the duty paid in purchase of such inputs. If the cement, angles, channels, Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (T.M.T) and other items are used in the construction of factory shed, building or laying of foundation, the duty paid on such items the assessee would n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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