TMI Blog2016 (7) TMI 1111X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant is aggrieved by the denial of credit on prefabricated building materials used for construction of shed/manufacturing premises. 2. The appellants are engaged in manufacture of HDPE bags and are availing the facility of CENVAT credit on inputs and capital goods. It was found that appellant had availed 50% of CENVAT credit on the duty 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 impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) components, spares and accessories of the goods specified at (i) and (ii) (iv) moulds and dies, jigs and fixtures; (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 goods falling under Chapter 94. As per Chapter Note 4 under Chapter 94, Prefabricated bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnative 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 assistance from the dictum laid in CCE, Visakhapatnam Vs Sai Samhita Storages(P)Ltd 2011 (270) ELT 33(AP). In the said case, the storage and warehouses constructed using the inputs were used for providing output services. Therefore, the facts being distinguishable the case is not applicable. 10. Another decision relied by the appellant is Mukund ..... X X X X Extracts X X X X X X X X Extracts X X X X
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