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M/s. Mukund Limited Versus Commissioner of Central Excise, Belapur

2016 (3) TMI 155 - CESTAT MUMBAI

Cenvat Credit availed on the Cement Sheets (A C Sheets) and Corrugated Aluminum Sheets disallowed - non qualification as capital goods as defined in Rule 2(a) (A) of Cenvat Credit Rules, 2004 - Held that:- It is an admitted fact that the sheets in question on which Cenvat Credit have been availed have been realized for providing cover to the machinery and its moving parts in order to protect them from dust particles etc. and to maintain temperature for good quality of output, more particularly i .....

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le nature of accessories of the capital goods and as such are capital goods as defined in Rule 2(a)A(iii) of the Cenvat Credit Rules 2004. Thus, the appeal is allowed and the impugned order is set aside.

The adjudicating authority is directed to give cash refund of the interest paid by the appellant which was paid by challan and the appellant is entitled to take back cenvat credit of the amount so reversed. The adjudicating authority shall disburse the cash refund within a period of .....

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ed Aluminum Sheets have been disallowed, holding that the same do not qualify as capital goods as defined in Rule 2(a) (A) of Cenvat Credit Rules, 2004 relying on the Ruling in the case of Vandana Global Vs. CCE 2010-TIOL-624-CESTAT-DEL-LB. 2. The facts are that the appellant is engaged in manufacture of Iron and Steel products like Billets, Blooms, Bars & Rods, Wire etc. falling under Chapter 72, 73 and 84 of the CETA. The appellant is engaged in both, alloy and non-alloy steel. The appella .....

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Sphereodised Annealing Furnace I & II 84.60 Billets Grinding Machine 84.74 Heat Treatment Furnaces 84.61 Ultra Sonic Testing Machine 84.56 Bloom Shot Blasting Machine 84.59 Wire Rod Blasting Machine 84.59 Bright Bar Machines 84.63 Billet Straightening Machine 84.62 Billet Reheating Furnace 84.61 Roughing Mill Stand for WRM 84.60 EOT Crane and Supporting Structure 84.26 Black Bar Straightening Machine 84.62 Garret Route Nad Block Route 84.55 These equipments and facilities enhance the metallu .....

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critical and delicate automatic equipments and its surrounding area to avoid uncertain fall of raw materials etc. 3. In the factory of the appellant some time in June-July 2008, on the objection on the audit party, on availing of credit on AC Sheets and Aluminum Corrugated Sheet. The assessee reversed Cenvat Credit on 14.7.2008 of ₹ 3,37,752/- and further paid the amount of interest of ₹ 76,218/- vide challans totaling ₹ 4,13,970/- during July-August 2008. Thereafter on being .....

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not technically acceptable as finished goods. This Tribunal held that it was technically essential to provide protective cover in and around the mill area to protect it from exposure to environment and accordingly held the credit admissible on the reversing material. The appellant filed refund claim for ₹ 4,13,970/- on 22.10.2008. Show cause notice dt. 12.1.2009 was issued and the same was adjudicated vide Order-in-Original dt. 12.5.2009 rejecting the refund claim on the ground that the e .....

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than capital goods within the meaning of Rule 2(a) A, (iii) of Cenvat Credit Rules, 2004. The Ld. Commissioner (Appeals) was pleased to dismiss the appeal observing that from the perusal of the definition of capital goods, sheets utilized by the appellant cannot be specified as capital goods. It was further observed that the assessee have not adduced any evidence that in absence of these goods, the capital goods could not be able to discharge their function. Further observed that, it has been ad .....

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t the sheets in question have been utilized for covering the machinery and/or machines which is necessary for smooth running and manufacture of quality output, as the same provides protection from dust etc. as well maintenance of right temperature for production. In this view of the matter, AC Sheets and Aluminium Corrugated Sheets utilized for that purpose clearly fall within the definition of capital goods under Rule 2(a)A(iii) being accessories of capital goods. Ld. Counsel further relies on .....

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sets which is mandatory under pollution control laws for proper discharge of effluents gases. Accordingly, Cenvat Credit was held admissible under Rule 2(a)A (iii) of Cenvat Credit Rules read with erstwhile Rule 57Q of the Central Excise Rules, 1944. The said ruling of the Honble Apex Court, it is pointed that was followed by Honble Madras High Court in the case of India Cements Ltd. Vs. CESTAT, Chennai 2015 (321) E.L.T. 209 (Mad.) wherein India Cements had utilized MS Rod, Sheet, MS Channel, .....

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er and chimney in factory. 6. Ld. DR relies on the impugned order and further relies on the ruling in the case of Commr. of Cus. & C. Ex., Vs. Rathi Steel & Power Ltd. 2015 (321) E.L.T. 200 (All.) wherein the Honble High Court of Allahabad considering the fact that the assessee have availed Cenvat Credit on items like Shapes & Section, M.S. Plate, H.R. Plate, M.S. Channel, Angles, Roughly Shaped, Forged Rolls, Plaints & Primer etc. the same were used in construction of factory s .....

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