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M/s Govind Nagar Sugar Ltd. Versus Commissioner of Central Excise, Allahabad

2015 (11) TMI 36 - CESTAT NEW DELHI

Denial of CENVAT Credit - credit on various items like MS sheets, plates,joist, channel etc. used for the purpose of manufacture / installation of molasses tanks, boiler etc - adjudicating authority denied the cenvat credit on the ground that items are neither capital goods nor inputs - Held that:- items are used for fabrication of capital goods, namely, shape and sections, plates, hot strips, PMP Plate, Angles, and Channels, Hot Strip Mill Plate, Joints Skelp etc. - appellant is entitled to tak .....

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shok Jindal, Member (Judicial) For the Appellant : Shri P K Mittal, Adv For the Respondent : Ms Ranjana Jha, AR ORDER Per: Ashok Jindal: The appellant is in appeal against the impugned order denying Cenvat credit on various items like MS sheets, plates,joist, channel etc. used for the purpose of manufacture / installation of molasses tanks, boiler etc. 2. The facts of the case are that the appellant is manufacturer of sugar and molasses and they have procured items like MS sheets, plates, joist, .....

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hich have been used for making / fabrication of structural supports of various machinery, namely, cane carrier, juice heater, evaporator, pan station, centrifuging machine, juice clarifier, sugar grader of Drier House, etc. and these are the capital goods which been further used in manufacturing of sugar and molasses. Therefore, the are used in or in relation to manufacture of final product therefore they are entitled to take cenvat credit. To support this contention, he relied on the decision o .....

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o be used essentially as a part of Boiler system would be classified as parts of Boiler only and these structurals components are nothing but the parts and accessories of the Boiler and are entitled for cenvat credit. 4. On the other hand, learned AR opposed the contention of the learned Counsel and heavily relied on the decision of Vandana Global Ltd. vs. CCE, Raipur [2010 (253) ELT 440 (Tri-LB)]. She also relied on the decision of Apex Court decision in the case of Saraswati Sugar Mills vs. CC .....

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present case as in that case, the supporting structurals which are embedded to earth were held as immovable assets and not entitled to take cenvat credit. In this case, the structurals are components and accessories of capital goods. Further in the case of Saraswati Sugar Mills ( supra), the Hon ble Apex Court held that the inputs of the goods are somehow different as in that case iron and steel items were used for installation of the machinery like cane milling plant, clarification plant, evap .....

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applicable to the facts of this case. In this case, steel items are used for fabrication of capital goods. Therefore, the facts are different from the facts of Bharti Airtel Ltd.(supra). Moreover, in the case of Mundra Ports & Special Economic Zone Ltd. vs. CCE [2015-TIOL-1288-HC-AMD-ST], the Hon ble High Court has held that the decision of Vandana Global Ltd. of Larger Bench of this Tribunal is not correct wherein the Hon ble High Court has observed that, We have carefully gone through the .....

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