TMI Blog2016 (12) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivity for the subject project is very much part of the manufacturing process. The Diesel Hydro Treator plant /project is intended for meeting the new BIS specifications and is a part of manufacturing activity. Therefore, the denial of credit is unjustified. The credit on umbrella structure is denied for the reason that it is a composite structure. This is not sufficient ground for denial of credit. It is not disputed that Umbrella structure is part of the high mast lighting where high inflammable products are manufactured. Therefore the denial of credit is unjustified. The credit availed on Aluminium coil used for insulation of pipes is held to be admissible in various judgments viz; CCE, Trichy Vs National Oxygen Ltd. [2006 (7) TMI 84 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on inputs, input services and capital goods for payment of Central Excise duty. 1.2 The Appellant availed credit of ₹ 93,50,780/- during the period April, 2013 to December, 2013 on various items under the category of capital goods and inputs. A Show Cause Notice was issued on the ground that the items are not covered under the definition of Capital Goods / inputs as provided under CENVAT Credit Rules, 2004; 1.3 After adjudication, the Ld. Commissioner dropped the allegations contained in the Show Cause Notice in respect of certain items on the ground that HR plates and sheets are used for the purpose of fabrication of storage tank etc and allowed credit of ₹ 80,85,006/- and denied credit of ₹ 12,65,794/- availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t shown the connection with the actual production process Aluminium coil is used for insulation of pipes and tanks for heat controlling. Commissioner of C. Ex., Trichy Vs. National Oxygen Ltd.-2007 (207) E.L.T. 516 (Tri.-Chennai) ₹ 15,761/- Caustic soda Lye Does not fall under the definition of capital goods It is used in the desuper heater/contract condenser column to control the SO2 breaks through the upstream reactor.Tamil Nadu Petro products Ltd. Vs. Commissioner Of C. Ex., Chennai- 2003 (160) E.L.T. 427 (Tri. Chennai) L.H. Sugars Factories Ltd. Vs. Commissioner Of C. Ex., Kanpur-2003 (162) E.L.T. 1164 (Tri. Del.) Rs.5,58 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal) ₹ 54,343/- Nirmode 657 MMA Does not fall under the definition of capital goods It is a quoted electrode for electrical arc welding and these welding electrodes are used for repairs and maintenance U.P. State Sugar Corporation Ltd. Vs. Commissioner of C. Ex., Noida-2013 (293) E.L.T. 259 (Tri. Del.) Ramala Sahkari Chini Mills Ltd. Vs. Commissioner of Central Excise, Meerut-I- 2016 (334) E.L.T. 3 (S.C.) ₹ 1,633/- Liquid Nitrogen Does not fall under the definition of capital goods Used in inertization (making system free of oxygen) for preservation of piping equipment and leak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 58/- 3. The Ld Counsel adverted to the definition of capital goods and inputs and argued that the above items would fall either within the definition of capital goods, their accessories/components / spares or would fall within the definition of inputs. That w.e.f 01-04-2011 the definition of inputs means' all goods used in the factory by the manufacturer of the final product'. He relied upon the judgment laid in CCE, Meerut V Modi Rubber Ltd. 2000 (119) ELT 197 (Tri- LB) and Sanghvi Forging Engineering Ltd. VCCE, Vadodara 2014 (302) ELT 136 (Tri- Ahmd) to canvass the proposition that though items on which credit is availed as capital goods may not qualify as capital goods, but if they can qualify as inputs the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is unjustified. The credit on umbrella structure is denied for the reason that it is a composite structure. This is not sufficient ground for denial of credit. It is not disputed that Umbrella structure is part of the high mast lighting where high inflammable products are manufactured. Therefore the denial of credit is unjustified. The credit availed on Aluminium coil used for insulation of pipes is held to be admissible in various judgments viz; CCE, Trichy Vs National Oxygen Ltd. 2007 (207) ELT 516 (Tri-Chennai) as without such insulation, heat in pipes and tanks cannot be controlled. 8. The credit availed on caustic soda lye is denied on the ground that it does not fall within the definition of capital goods. The appellants have rai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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