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2016 (7) TMI 1111 - CESTAT HYDERABAD

2016 (7) TMI 1111 - CESTAT HYDERABAD - 2016 (340) E.L.T. 401 (Tri. - Hyd.) - Cenvat Credit - Capital goods - Pre-fabricated building materials - Held that:- The appellant herein has made manufacturing premises/shed using the 'pre engineered structures/ pre-fabricated building materials". As discussed above, as these goods fall within Chapter 94, in my view, the credit is not admissible - Credit not allowed - Decided against the assessee. - E/2529/2011 - Final Order No. A/ 30511/2016 - Dated:- 14 .....

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paid on 'Pre-fabricated building materials which was received by them during the years 2006-07 and 2007-08 to the tune of ₹ 3,37,629/- under the category of capital goods. A show cause notice was issued raising the allegation that these goods are not covered under the definition of capital goods and proposing demand of the said amount along with interest besides proposal to impose penalty. 3. After adjudication the original authority confirmed the demand along with interest and imposed .....

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were utilized for construction of factory/shed wherein capital goods are installed for production and storage of duty payable output products and for proper protection/maintenance from the climatic conditions from time to time. 6. Against this, the learned AR Ms. N.Soumya reiterated the findings in the impugned order. She adverted to the definition of 'capital goods' and urged that the subject items do not fall under the definition of "capital goods". The subject goods are clas .....

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; (v) refractoriness and refractory materials; (vi) tubes and pipes and fittings thereof, and (vii) storage tank, (viii) used - (1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or (2) for providing output service; 7. It is correct that the subject items/pre-fabricated building parts fall under Chapter 94 of CETA, 1985. The definition mentions only goods falling under Chapter 82, 84, 85 and 90. It does not mention goo .....

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, component or accessory of capital goods. The appellant has availed credit on pre-fabricated building parts as capital goods. Pre-engineered/pre-fabricated building materials are not listed in the definition. The learned AR has stressed that it is not only necessary that the goods fall in the chapter headings mentioned in the definition, but it is also necessary that said goods are used in the factory of the manufacturer of the final product. 8. The learned counsel argued that Plant shed/manufa .....

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uot;used in the factory of the manufactured and not used for the factory/shed/building. 9. The alternative plea put forward by the appellant is that, if the pre-fabricated buildings are not eligible as capital goods, they may be considered under the category of 'inputs' as under Rule 2(k) of Cenvat Credit Rules, 2004. He argued that during the relevant time, credit was admissible on steel and cement used for construction of shed/buildings etc. under the category of inputs. He sought assi .....

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