TMI Blog2015 (11) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of maintaining temperature insulation and for such insulation the aluminium coils and sheets are used, therefore aluminium coils and sheets are used in plant and the credit should be allowed on such material. Cenvat Credit on the same item i.e. Aluminium sheets/coils used for insulation for the purpose of cooling system, has been allowed. Following the ratio of the above judgments, I am of the view that appellant is entitle for the Cenvat credit in respect of aluminium coils/sheets etc. used for insulation of pipes and tubes in the plant of the appellant. - The foundation bolt admittedly classified by the supplier under Chapter 84 as spare parts. In the definition of capital goods provided under the Cenvat Credit Rules certain chapter has been specified. One of the chapters is chapter 84, and should be used in the factory of the appellant. Since foundation bolt is classified under Chapter 84 and admittedly used in the factory of the appellant, this is sufficient to qualify the item as capital goods in term of definition of capital goods. Therefore the Cenvat credit on the foundation bolt is clearly admissible. Appellant have clearly expressed their intention and act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled appeal before the Commissioner (Appeals), who vide impugned order held that Cenvat Credit in respect of aforesaid goods is not admissible and he also held that equal amount of penalty under Section 11AC is also imposed apart from the demand of interest, therefore appellant is before me. 3. Ms. Anjali Hirawat, Ld. Counsel for the appellant submits that input on which the credit was availed such as Steel Plates, Foundation Bolt, HR Steel Coils, M.S. Angles, C.R. Sheets, Aluminum Coils Aluminum Sheets used in the fabrication and erection of storage tanks. The storage tank is undisputedly capital goods as per the definition of Cenvat Credit Rules, therefore credit is admissible. She further submits that Cenvat Credit, in the identical case wherein input used for fabrication and erection of storage tanks, has been allowed in the various judgments, some of the judgments are cited below:- (a) SLR Steels Ltd. Vs. CCE [2010(249) ELT 394(T) (b) CCE Vs. SLR Steels Ltd.[2012(280) ELT 176(Kar.) Affirmed by Hon ble Karnataka High Court [2014(302)ELT A29(Kar.)] (c) KCP Ltd. Vs. CCE [2009(237) ELT 500(T)] (d) Bannari Amman Sugars Ltd. Vs. CCE [2010(250) ELT 32 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intended to take any wrong benefit. It was upon the department to issue a show cause notice, if at all the department of the view that credit was not admissible and show cause notice could not have been issued within the normal period. Since, the show cause notice, even after having submitted details regarding the availment of credit, issued beyond the limitation of one year, show cause notice is clearly time barred. She further submits that the Ld. Commissioner (Appeals) has heavily relied upon the judgment of larger bench of this Tribunal in the case of Vandana Global Ltd. Versus Commissioner Of C. EX., Raipur [ 2010 (253) E.L.T. 440 (Tri. - LB)]. It is her submission that there were various judgments on the issue involved, in the favour of assessees. Due to different view by division bench the matter was referred to the larger bench. The assessees through out the country had entertained bonafide belief, following earlier judgments on the issue of Cenvat Credit in respect of structural steel, that credit is admissible. It is only after Vandana Global judgment was delivered and earlier judgments which allowed credit on the similar items stood overruled. Therefore for this reason a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason penalty under Section 11AC was also rightly imposed. 5. I have carefully considered the submissions made by both sides and perused the record. 6. I find that steel materials were used for fabrication and erection of storage tank within the factory of the appellant. The said storage tanks are undisputedly used for the storage of input finished goods and chemicals plant which is further used in the manufacture of the final product. In the chemical plant the storage tank is vital part of the entire plant and machinery. Therefore, in my view storage tank are capital goods. This issue has been dealt in the various judgments. In the case of SLR Steels Ltd.(supra) the Division bench of this Tribunal has held as under: 6.2 Before us also, the Revenue has not produced any evidence against the order of the adjudicating authority. It is seen from the factual findings of the adjudicating authority that the cement or steel are used by the appellant for the purpose of constructing Iron/Coke Storage tank, Gas storage tanks. There is also a clear factual finding, which the Revenue has not disputed, the fact of the usage of the items in the construction of Storage tanks/Pollution co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire plant. The pipes and tubes are compulsory for the purpose of maintaining temperature insulation and for such insulation the aluminium coils and sheets are used, therefore aluminium coils and sheets are used in plant and the credit should be allowed on such material. This issue has been considered in the judgment of National Oxygen Ltd.[2007 (207) ELT 516(T)] wherein Division Bench of this Tribunal held as under: 4.1 The items mentioned at Sl. No. 20 to 33 above are electrical devices which are capital goods as per the ratio of the Jawahar Mills Ltd. v. CCE, Coimbatore [1999 (108) E.L.T. 47 (Tri.-LB)]. 5. We find that all items other than inputs including Red oxide, Primers and Paints conform to the definition of capital goods given in clauses (a) (b) of Explanation 1 to Rule 57Q. Each of these items is either a machine, machinery, plant, equipment, apparatus, tool or appliance used for producing or processing of any goods or to bring about any change in any substance for the manufacture of final product or, is a component, spare part or accessory of such machine, machinery etc. The Revenues appeals have no merit as regards these items and have to be dismissed. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Goods, Spares, components and accessories used in the IPA plant/factory. Letter dated 20th March, 2006 Enclosed please find herewith copies of lease agreements entered with MIDC in respect of purchase of various plots and allotment letters thereof. Further, we wish to state that though our Registration Certificate mentions our address only as Plot-K-1, MIDC Area, our all other plots are registered with Excise Department. The address Plot K-1, MIDC Indl. Area is mentioned as a general practice i.e. as appeared in our Letter Heads. We have requested your office about inclusion of other plots long back vide our letter no. 401/91-92/3009 dated 31/7/1991 alongwith detailed Ground Plan. The premises on plots and boundaries was once again informed to the Exicse Deptt. Vide request for Central Excise Registration filed on 10/12/2001. IPA plant is situated on Plot K1, K2, K3, K4 and K5. The Plot-K-2 is transferred in our companys name in December 2002 by MIDC and includes in our Factory premises since then. The fact was informed to you vide our letter No. 150/CE/01/2005-06/30 dated 12/7/2005 with information about taking Cenvat Credit on Capital Goods, Spares, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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