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M/s Matrix Laboratories Ltd. Versus The Commissioner C,C.E & ST, Hyderabad

2016 (8) TMI 536 - CESTAT HYDERABAD

Cenvat credit - allowability - availed on MS angles, channels, beams, plates etc. - used for fabrication of technological structures bridges, supporting to the equipments like reactors, distillation column, heat exchangers, receivers in utility and production blocks, pipe line systems etc. - Held that:- I am not able to agree with the view of the Commissioner that the MS items used as support structure for capital goods/parts/components/ are not eligible for Cenvat credit. The use of MS items to .....

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at the items like angles channels, beams pipes tubes etc. used as parts of technological structures which support a reaction vessel or used in particular equipment in the manufacture of bulk drugs was admissible. - Cenvat credit - allowability - items for making canteen sheds - Held that:- claim of credit on MS items used for making canteen sheds, is not admissible for the reasons that canteen sheds do not qualify as capital goods as provided in Cenvat Credit Rules, 2004. It then becomes nec .....

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d:- 12-1-2016 - Ms. Sulekha Beevi, C.S. Member ( Judicial ) Shri R.Muralidhar, Advocate for the Appellant Shri S.V.Nair, AR for the Respondent ORDER [ Order per Sulekha Beevi. C.S. ] 1. The appellants are manufacturers of bulk drugs and intermediaries falling under chapter 29 of the 1ST Schedule of CETA 1985. They are also availing CENVAT credit on inputs and capital goods. During the period from Nov. 2008 to June, 2009, the appellants had availed Cenvat Credit on MS angles, channels, beams, pla .....

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the appeal upholding the disallowance of credit but reduced the penalty to ₹ 50,000/-. Being aggrieved by the said order, the appellants have preferred this appeal. 2. The learned counsel for the appellant Sh. R Muralidhar submitted that the appellant had explained the manner of use of the impugned goods in fabrication/manufacture of capital goods, spares and accessories to capital goods. The MS angles /channels were used for fabrication in support to the technological structural bridge wh .....

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ered engineer after due verification. The learned counsel placed reliance on the judgments in Rajasthan Spinning and Weaving Mills 2010(255) ELT 481(SC) and the case of India Cements Ltd 2015(321) ELT 209(Mad). 3. Against this the Learned AR vehemently argued that the credit is not admissible as the subject items do not qualify as capital goods nor is there any proof that they were utilised for manufacture of capital goods/components/spares/accessories. That the appellant have not submitted suff .....

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s, distillation column, heat exchangers, receivers in utility and production blocks, pipe line systems etc. The Commissioner(Appeals) has brushed aside this certificate stating that there are no supporting documents to evidence the use of these items in the manner stated in the certificate. It is further stated by the commissioner that even assuming that the appellants used the subject MS items for fabrication of support of structure to support pipe lines/heat exchangers/reactors distillation co .....

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ls and India Cements. While considering the issue the Hon ble Courts have taken the view that the machineries in a factory have to be properly supported and connected. Such structural supports are necessary for the machines to make them function without vibration or movement. In Divis Laboratories Ltd Vs CCE Viskahpatnam 2006(196) ELT 285) (Tri-Bang) it was held that the items like angles channels, beams pipes tubes etc. used as parts of technological structures which support a reaction vessel o .....

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