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2015 (11) TMI 461 - CESTAT KOLKATA

2015 (11) TMI 461 - CESTAT KOLKATA - TMI - Denial of CENVAT Credit - Misdeclaration of goods - credit on various items of Chapter 72 and 73 in the guise of capital goods - Held that:- according to appellant various items of iron & steel were used for manufacture of supporing structures and foundation of the main paint shops. The main machines are rested on these structures in different floor without which the processes in the machines cannot function. - there is no definite finding on this issue .....

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eady received by them. Revenue s sole ground for denying the credit is that the appellant could not have utilized the impugned services for manufacture of the final product (as they dismantled their plant at Singur). We are of the opinion that as the input services were received by M/s. Tata Motors at Singur for manufacture of the final products, the said unit is eligible to take credit in terms of Rule 3 of CENVAT Credit Rules, 2004 read with Rule 2 (l) of the said Rules. - Tata Motors, Singur .....

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of Central Excise, Kolkata-IV wherebyhe confirmed the demand of ₹ 2,14,05,610.20 and ₹ 29,00,,15, 241.49 alongwith the interest at the appropriate rate and impositio0n of equal amount of penalty on the appellant. 2.1 Brief facts of the case are that the appellant had applied for Central Excise Registration on 21/08/2007 for manufacturing excisable goods, namely- motor cars, engine and motor vehicle parts falling under Chapter Heading 87.03, 84.07/84.08 and 87.08 respectively of the f .....

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d 73 treating the said items as capital goods. They further took the credit of ₹ 29,00,15,241.49 against the input service distributors (ISD) invoices dated 15/09/2009 and 15/05/2010. 2.3 A show cause notice dated 3/12/2010 was issued to the appellant i.e. M/s. Tata Motors Ltd., Singur alleging that they had irregularly taken the credit on various items of Chapter 72 and 73 in the guise of capital goods.It is alleged that the impugned items were the structural materials of iron and steel a .....

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e as per statement dated 18/07/2009 of the Chairman of the Company M/s. Tata Motors available at page 6 of the Annual Report 2009 and the letter dated-3/3/2009 of the assesse submitted to the Range Officer, it appeared that the decision to dismantle the plant at Singur unit and its shifting to Gujarat was completed in the first half of the year 2009 or before. It appeared from these facts that it was in the knowledge of the appellant that they would not use the impugned input services at their S .....

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roduct. Hence, supporting structures should be treated as integral part of the capital goods. The Ld. Advocate submits that there is no restriction in Rule 2(k) for the availment of credit of duty paid goods for the manufacture of capital goods. He, further submitted that the entire demand is time barred, in as much as during the relevant period there was conflicting views of the various Tribunal and the eligibility of credit or other wise has been decided only by the Larger Bench of the Tribuna .....

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engines as well as 15 cylinder heads in Singur plant before the company took the pull out decision due to continued agitation and public unrest in Singur. The Appellant had also taken trial runs for other manufacture of the motor vehicles in this unit. Accordingly, the credit against the ISD invoices is taken correctly by the appellant. 4.1. Ld. Special Counsel for Revenue submitted that the various items of iron and steel cannot be treated as capital goods in terms of the definition given unde .....

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mezzanine) structures in their work shop. They are embedded to earth and thus are in the nature of immovable property and are not excisable goods., In the instant case, the appellant is not eligible for CENVAT Credit in terms of the judgment in the case of Vandana Global Ltd. Vs. C.C.E. reported in 2010 (253) ELT 440 (Tribunal-LB). 4.2 On the issue of credit taken on input services he submitted that in the impugned proceedings, the authenticity of the invoices has not been called into question, .....

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erused the records. 6.1 We find that according to appellant various items of iron & steel were used for manufacture of supporing structures and foundation of the main paint shops. The main machines are rested on these structures in different floor without which the processes in the machines cannot function. On the other hand, it is the Revenues contention that the impugned items were used for the flooring purposes only. On perusal of the order passed by the Ld. Commissioner, we find that th .....

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(ii) used by the manufacturer, whether directly or indirectly in or in relation to the manufacture of final products and clearance of final products from the place of removal,and includes services used in relation to setting of, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating .....

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section 66 of the Finance Act paid on (i) - (ii) any input service received by the manufacturer of final product or by the provider of output service on or after the 10th day of September, 2004. 6.3 It is evident from the above provisions that a manufacturer of the final product is allowed to take credit of service tax in respect of input services received by him for use in or in relation to manufacture of the final product including the services used in relation to setting up of the plant. It .....

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