TaxTMI 
TaxTMI 
2008 (2) TMI 125
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.... 2(a) of the Cenvat Credit Rules,2004 and penalty of Rs. 75,000/- has also been imposed upon them. 2. The appellants' contention is that steel and cement on which credit had been availed were an integral part of kiln, cooler and chimney used in the appellants' factory premises for manufacturing HR coils, plates etc., that there was a technological requirement to place the capital goods in a particular manner, in terms of its height, angles etc. and this requirement was fulfilled by using steel and cement for providing the necessary foundation and support for the capital goods, and therefore, eligible to credit in the light of Tribunal's decision in the case of Bellary Steel & Alloys vs. CCE [2005(180)ELT 92], Mukund Ltd vs Commissioner [2....
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....r put to any use in the manufacturing operations. This is the view held by the Hon'ble Rajasthan High Court in the case of Aditya Cement vs. UOI [2000 (221)E.L.T. 362 (Raj)] wherein the High Court reversed the decision of the Tribunal reported in 2003(159)E.L.T. 1005, rejecting the assessee's claim for credit on steel items such as angles, channels, beams used as supporting structure for different machines, and machinery on the ground that the said items were neither machine or machineries nor were they componenets/spare parts/accessores thereof. The High Court held as under : - "It is clear that so far as the items of iron and steel are concerned, t....
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....g structures for the various machineries where the same has been used as supporting structures for the various machineries. Reliance has been placed on the decision in the case of Global Sugar Ltd. v. C.E., Kanpur 2000(119) ELT 611(T)". 6. The Tribunal's decision in Ispat Industries Ltd supra has considered almost all the earlier decisions on the subject and concluded that as long as steel and cement are clearly linked with the machinery, i.e. the specified capital goods, and are used for production of the final product, the same would qualify as capital goods. It was, however, held that such items will not be eligible for credit when used for constructing factory buildings. 7. As regards the Hon'ble ....