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Srinathji Ispat Ltd. Versus CCE & S.T. Ghaziabad

2015 (10) TMI 2072 - CESTAT NEW DELHI

Denial of CENVAT Credit - Manufacture of capital goods - Held that:- Tribunal failed to appreciate this contention and disallowed the credit. Presently, the credit is claimed as inputs used for manufacturing capital goods and not as capital goods. - CENVAT Scheme is a beneficial legislation and should be given as wider meaning as possible. Inputs mean anything, i.e., put into the stream of manufacture. In the instant case, the contention of appellant is that the Sections, Shapes, Channels, Angle .....

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e along with photographs showing the steps of manufacture/fabrication of moulds. This certificate explains the use of the impugned items in manufacture of moulds and also use of such moulds in the appellants industry. - as already stated moulds being specified as capital goods, the inputs used for manufacture of capital goods are eligible for credit. - Decided in favour of assessee. - Appeal No. E/55361/2014-ST[SM] - Final Order No. A/52798/2015-SM(BR) - Dated:- 7-9-2015 - Smt. Sulekha Beevi CS, .....

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s. During the course of audit, it was observed that during the period from April, 2008 to March, 2010 the appellants availed credit of ₹ 8,02,278/- on items like Shapes, Sections, Angles, Channel, TMT bars and welding electrodes as inputs. This was objected on the ground that these would not come under definition of inputs. Appellants explained that these items were used as inputs for manufacture of capital goods. The appellants availed credit on these items for ₹ 2,56,324/- for furt .....

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Sometimes, these moulds are procured from outside, but in certain case they fabricate/manufacture these moulds within their factory. The moulds get damaged during the course of use and require replacement. As they are made of steel, old and discarded moulds are used for melting purpose along with inputs. The appellants use Shape, Section, Channel and Angle for manufacture of such moulds. Again, TMT Bar is used for stirring of hot melting metal in the furnace. Since temperature is very high they .....

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contended that the items would fall within the definition of inputs used for manufacturing capital goods and that therefore the credit was rightly availed, by the appellant. 2. Against this, the learned DR strenuously argued that the credit is inadmissible. He pointed out that in appellants own case for an earlier period (Srinathji Ispat Vs.CCE, Ghaziabad, 2010 (262) ELT 849 (Tri-Del) the Tribunal has denied credit on TMT Bar, Shapes, Sections, Angles and Channels. It is also submitted that tho .....

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tems for the very same purpose, i.e., for making moulds. The appellant then claimed credit on these items as capital goods contending that moulds are specified in the definition of capital goods and that definition of capital goods also included parts, components and accessories used for capital goods. The Tribunal failed to appreciate this contention and disallowed the credit. Presently, the credit is claimed as inputs used for manufacturing capital goods and not as capital goods. 4. The term i .....

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