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2016 (11) TMI 1097 - CESTAT NEW DELHI

2016 (11) TMI 1097 - CESTAT NEW DELHI - TMI - CENVAT credit - structural steel used in the manufacture of final products cleared on payment of duty - rail, railway track materials and JO trucks - whether the appellants are eligible for the credit on duty paid on beams, columns, structures, fabricated columns used as inputs for manufacture of structures and cranes, which were removed on payment of appropriate duty? - the appellants could not produce relevant details with supporting documents in s .....

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used in railway line, as mentioned above, the credit has been allowed to the appellant in subsequent orders. Reference can also be made to the order dated 25.02.2010 of the Commissioner (Appeals) in the appellant's own case, where credit has been allowed on railway, MBC concrete sleepers as inputs. Similarly, credit has been allowed on beams, angles, columns and rails used in the manufacture of capital goods, which are cleared on payment of duty. - Admissibility of credit on JO trucks - Hel .....

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Order No.51754/2016 dated 5.5.2016. The said order also allowed cenvat credit in respect of railway track materials following the decision in the appellant's own case vide Final Order No.52840 of 2015 dated 9.9.2015. For JO trucks, reliance was placed on earlier decision in the appellant s own case vide Final Order No.52994 of 2015 dated 8.3.2015. - The matter of eligibility of credit on various iron and steel items, railway track material, JO truck were subject of many earlier proceedings .....

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ogesh Agarwal, DR for the respondent ORDER Per B. Ravichandran These are two appeals dealing with similar issues covering different periods and are taken up together for disposal. The appellants are engaged in the manufacture of sponge iron, which in turn is used in the manufacture of bloom /billets. A part of billets are used for the manufacture of rolled products such as structural steel and rail and such rolled products are used for further manufacture of various structures in Beam Welding Un .....

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has been taken by the appellant were rightly eligible for the same. He mainly relied on the decisions in the appellant s own case by the Commissioner, Commissioner (Appeals) and Tribunal on various occasions. The summary of his submission are as below:- (a) input stage cenvat credit on structural steel and rail/crane rail used in the manufacture of the final product, which are cleared on payment of duty are rightly eligible for credit. Reliance is placed on the order dated 24.10.2007 of Commiss .....

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of Commissioner (Appeals), Raipur dated 25.02.2010, Order-in-Original dated 29.06.2015 of Commissioner, Raipur and Final Order dated 5.5.2016 of the Tribunal in appellants own case. (c) Cenvat credit on JO trucks is rightly available as these are material handling equipments, which are used for transportation of raw materials within the premises of manufacturing unit. (d) The department cannot take divergent view. As can be seen from the above narration, the Department has been taking inconsiste .....

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in detailed reasons supported by law for denial of credits. The cenvat credit has been correctly denied as these items do not fall under the category of either inputs or capital goods. It was further submitted that the major portion of the credit denied relates to duty paid goods used as raw materials for manufacture of structures and cranes, which are removed on payment of duty. It was submitted that it is for the appellant to satisfactorily establish such usage and later clearance on payment o .....

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denial of credit in this regard is on the ground that the appellants could not produce relevant details with supporting documents in support of their claim for availment of cenvat credit. The Original Authority relied on Rule 9(5) of Cenvat Credit Rules to hold that the appellants failed to support their claim. We note that the appellants submitted daily production reports relating to structures and cranes, daily stock account of finished goods, invoice-wise statement of clearance of crane and .....

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held that the inputs were used as raw materials, which were evidently contained in final products cleared on payment of appropriate duty. He discounted the contention of the Revenue that these goods are the support structures for mounting machines and as such, are not machines or components and hence, not eligible for credit. It was categorically recorded that such assertion in the show cause notice was erroneous in view of the facts examined by the Original Authority. He accordingly allowed the .....

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ed documents submitted by the appellant regarding duty paid clearances of the goods manufactured /fabricated in their factory using these M.S. Items and also the Department s view taken in the order mentioned above in the appellant s own case for the subsequent period, we find no justification for denial of credit on these items in the impugned orders. Regarding cenvat credit on rails, MBC concrete sleepers used in railway line, as mentioned above, the credit has been allowed to the appellant in .....

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ctory premises. We have perused the technical write up and photographs of the said JO trucks. These are four wheeled industrial platform truck for horizontal movement of heavy material upto 2 MTs. These are basically material handling equipments operated within the premises of the factory. We note that the credit on such JO truck has been allowed by the Tribunal in the appellant s own case vide Final Order No.51754/2016 dated 5.5.2016. The said order also allowed cenvat credit in respect of rail .....

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