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2016 (10) TMI 480 - CESTAT NEW DELHI

2016 (10) TMI 480 - CESTAT NEW DELHI - TMI - Cenvat credit - credit was disallowed mainly on the ground that various steel items were used in conjunction with boiler, sinter plant, steel melting shop, coke oven etc. and claim has been made that those steel items are to be considered as parts, accessories and capital goods, which was not accepted by the Revenue - Held that:- The eligibility of manufacturer for availing credit on various steel items like in the present case has been a subject matt .....

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s have argued that the various capital goods, such as, kiln, material handling conveyor system, furnace etc. cannot be suspended in mid air. They will need to be suitably supported to facilitate smooth functioning of such machines. It is obvious that the structural items have been suitably worked upon for this purpose. Accordingly, the goods fabricated, using such structurals, will have to be considered as parts of the relevant machines. The definition of Capital Goods includes, components, spar .....

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Technical ) Sh. Rahul Tangri, C. A. for the appellant Shri R. K. Manjhi, DR for the Respondent ORDER Per B. Ravichandran The appellants are aggrieved by the order dated 29.10.2008 of Commissioner of Central Excise, Raipur. By this impugned order cenvat credit amount of ₹ 1,76,00,505/- was disallowed to the appellant and penalty equal to the said amount was imposed on them. 2. Brief facts of the case are that the appellants are engaged in the manufacture of steel billets liable to Central .....

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support the various specified capital goods like boiler, sinter plant, steel melting shop, pulverized coal dust injection plant, coke oven conveyors etc. The period involved is February, 2004 to February, 2005. 3. We have heard both the sides and perused the appeal records. We find that the credit was disallowed mainly on the ground that various steel items were used in conjunction with boiler, sinter plant, steel melting shop, coke oven etc. and claim has been made that those steel items are to .....

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of the said product. He held that various capital goods in which the steel items were supposeD to have been used themselves were not goods and as such the question of allowing credit on steel fabrication items used in such immovable plant and machinery does not arise. 4. We find that the original authority misdirected himself in examining the relevant issue to decide he disputed hand. The excisability or otherwise of the plant and machinery of the appellant is not the point for decision. The var .....

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onal for the intended purpose of manufacture of final product. The objection that the steel items are added to already immovable property is only examines part of the issue without reference to the actual usage and their role in the plant and machinery and other manufacture of final product. The original authority records that the appellants did not avail credit on structural steel items which were used in civil construction or structures. All the structural items were used in connection with ma .....

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d to earth and are not regularly moved from place to place. 6. The Hon ble Madras High Court examined similar set of facts for eligibility of cenvat credit in various decisions Thiru Arooran Sugar vs. CCE 2015-TIOL-1734-HC-MAD-CX, CCE, Thiruchirapalli vs. India Cement Ltd. 2012 (285) ELT 341 (Mad.), 2014 (305) ELT 558 (Mad.) and -2014 (310) ELT 636 (Mad.) it was held that MS angles, beams, channels, bars used for erection of new plant and machinery inside the factory are eligible for cenvat cred .....

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Limited 2011 (267) ELT 55 (Chhtt.) allowed cenvat credit on MS plates, angles, channels following the decision of the Hon ble Supreme Court cited above. 7. In a recent decision in the case of Singhal Enterprises Pvt. Ltd. vs. CC&CE, Raipur vide final order No. 53013/2016 dated 12.08.2016. The Tribunal examined eligibility of similar steel structurals items and held in favour of the manufacturer. The relevant portion of the order is as under: 13. Now we turn to the question, whether credit is .....

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ied out in Explanation-II to Rule 2(a) which defines the term input w.e.f. 07.07.2009. It has further been pleaded that the cenvat credit claimed for the period prior to this will be covered within the decision of the Larger Bench in the case of Vandana Global Ltd. (supra). 14. The Larger Bench decision in Vandana Global Ltd. s case (supra) laid down that even if the iron and articles were used as supporting structurals, they would not be eligible for the credit, considering the amendment made w .....

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