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Hindustan Zinc Ltd. Versus Commissioner of Central Excise And Service Tax, Jaipur-II

2016 (3) TMI 346 - CESTAT NEW DELHI

Eligibility for cenvat credit - conveyor system, thickener and filtration system, electrical equipments - Held that:- The Hon'ble Supreme Court in case of CCE, Jaipur Vs. Rajasthan Spinning & Weaving Mills Ltd. [2010 (7) TMI 12 - SUPREME COURT OF INDIA ] applied "user test" to find out whether or not particular goods could be said to be capital goods which would depend on use for which it was put into as such. The classification of item purchased by the appellant by itself will not determine the .....

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are eligible for cenvat credit. tHUS structural items such as angles, channels, rods, etc. required to make the machines functioning without any vibration or movement eligible for cenvat credit. - Decided in favour of assessee - Excise Appeal No. 51807/2015-EX (SM) - Dated:- 31-12-2015 - Ashok Jindal, Member (J) And B. Ravichandran, Member (T) For the Appellant : Ms Sukriti Das, Adv For the Respondent : Shri Vaibhav Bhatnagar, AR ORDER Per B. Ravichandran The appeal is filled against the order d .....

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adjudication, order dated 30.12.2013 was passed by the Commissioner. On appeal, the Tribunal remanded the matter back to the Original Authority with a direction to examine the report submitted by the Range Superintendent dated 12.12.2013 submitted by the jurisdictional Range Superintendent regarding various usage of disputed items. The impugned order was passed in pursuance of the said remand direction. The Original Authority while allowing cenvat credit of ₹ 3,99,269/-disallowed the credi .....

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(viii) of para-28 of the impugned order wherein in spite of specific report of the officer, who inspected the factory to the effect that the items in dispute were used by the assessee for manufacture of integral part of conveyor system, thickener and filtration system, electrical equipments, ld. Commissioner disallowed the credit mainly on the ground that these items were either used in support structures or as part of protection equipment. Ld. Counsel contested the findings of the Original Aut .....

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frame; an amount of ₹ 11,03,752/- taken on technical structures were denied by the Original Authority. The reason given is that these items are basically designed to support mechanical equipment, to avoid vibration and as such, no credit can be allowed on them. I find that the inspection report of the officer categorically states that all these items were used by the assessee for manufacture of categorical part of conveyor belt systems, thickener and filtration system. It is not clear how .....

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yor system integrally will have moving part which conveys materials and static parts, which enables the moving part working as a base. The Original Authority's findings in respect of these items are not sustainable. 5. An amount of ₹ 4,95,978/- was disallowed on galvanized steel, nuts and bolts on the ground that these items are used for making the product of electrical instrument of mill plant. It stands to logic that a product system of electrical instrument in a mill is an accessory .....

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nstruments and the Original Authority's finding that they are used as support structure is misconceived. 7. An amount of ₹ 43,420/- was denied as accredit on angles. The verification report specifically states that these are used as integral part of conveyor belt system. The Original Authority denied the credit on the ground that these items can be used only as support structures. No supporting evidence to arrive at such conclusion has been elaborated by the Original Authority. 8. The .....

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