TMI Blog2016 (12) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER No.A/31040/2016 - Dated:- 14-10-2016 - Ms. Sulekha Beevi, C.S., Member (Judicial) Shri Y.Sreenivasa Reddy, Advocate for the Appellant. Shri Nagaraj Naik, AR for the Respondent. [Order per: Sulekha Beevi, C.S.] 1. The appellants are engaged in manufacture of Biodiesel and are availing the facility of Cenvat credit on inputs and capital goods. It was observed by department that during the period from 9/2009 to 4/2011 the appellants have availed irregular credit on 'Fabricated Steel Base Plate / Base Rails' under the category of capital goods which according to the department was not admissible. A show cause notice was issued alleging irregular availment of credit on the ground that the subject items(&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon the judgments rendered in CCE,Raipur V Jindal Steels Power Ltd 2015(330) ELT 708 (Tri-Del) and Darampur Sugar Mills Ltd V CCE, Meerut 2013 (296) (Tri-Del) . It was also contended by the Ld Counsel that the subject items were mis-classified by the supplier under 7308, which has been the cause for the allegation and that the subject items actually falls under Chapter 84 and is covered by the definition. On this point he relied on the judgment rendered in KSB Pumps Ltd. V CCE, Pune 2016 (331) ELT 116 (Tri- Mum). 4. On behalf of the department the Ld. AR Sh. Arun Kumar reiterated the findings in the impugned order. He submitted that the subject items do not fall under the category of capital goods. The classification shown in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be replaced for want of repairs, the entire system has to come to a halt. Base plates/rails provide a convenient medium to reduce the idle time of plant while replacing a machine with another one. Hence, they enable optimal and efficient functioning of the machines connected parallel. The base plates/rails enable the movement of machines on all four sides to the required extent so that they can be easily aligned with other machines. These base plates are attached to civil foundation by way of nuts and bolts. Machine is attached to these base plates again by nuts and bolts. 3. By virtue of their usage in relation to the machines in process, they are components or accessories of these machinery. The goods are used not to erect the machi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of exemption under Notification No. 67/95-CE dated 16-03-1995. Rejecting the contention of department that these are foundation or platforms and are part of civil structure the Tribunal held that these are accessories to capital goods . The relevant portion of the judgment is reproduced as below: The second group includes Base Frames for various machines/machineries such as Air Pre-heater, SH Casing, Coal Feeder, Deacrator Drum, ID Fan, Motor, Ash Dryer/Pump, (Ash Dyke Motor and Pump) and Silo Pump. All these Base Frames are fabricated / manufactured according to specific design and drawing for specific requirement and on which various machines/machinery of the plant are installed for achieving required rigidity and vibration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, that the purchase order speaks of centrifugal pump, in addition to the said pump it speaks of few items such as base frame, mechanical seal, cufflings etc. The purchase order gives separate value for the bare pumps and separate value for other items. The base frame with foundation bolts is found as a separate item with separate value. We have also seen the invoice. Even in the invoice produced, we find the appellant is charging for the pump separately and certain other items such as base frame separately. We also note that in the invoice the appellant used the term base plate only. During the hearing, the Ld.counsel for the appellant admitted that they have sold the bare pump also to some of the customers and it was explained by him that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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