TMI Blog2017 (1) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... r the credit is admissible even though they are fixed to the earth. The issue was held in favor of the assessee Credit allowed - appeal allowed - decided in favor of assessee. - E/25141/2013 - A/31241/2016 - Dated:- 18-11-2016 - Ms. Sulekha Beevi, C.S., Member (Judicial) Sh. B. Venugopal, Advocate for the Appellant. Sh. P.S. Reddy, Assistant Commissioner (AR) for the Respondent. ORDER Brief facts of the case are that the appellants are engaged in the manufacture of paper and are availing the facility of CENVAT Credit on inputs and capital goods. A Show Cause Notice was issued covering the period April 2010 to January 2011 alleging that the appellant had availed irregular credit to the tune of ₹ 6,62,725/- on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used for fabrication of storage tanks. He submitted that storage tanks fall within the definition of capital goods and therefore credit ought to have been allowed. The Ld. Counsel relied upon the decision laid in the case of M/s India Cements Ltd., Vs CESTAT, Chennai reported in [2015-TIOL-650-HC-Mad-CX] and also the case of CCE, Mysore Vs M/s ICL Sugars Ltd., [2011 (271) ELT 360 (Kar)] . 3. On behalf of respondent the Ld. AR Sh. P.S. Reddy submitted that the MS items do not fall within the definition of capital goods or inputs and therefore the disallowance of credit is legal and proper. He submitted that when subject items were used to fabricate/manufacture storage tanks, the same become fixed to the earth making them immovabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as in the case of M/s Monnet Ispat and Energy Ltd., Vs CCE, Raipur [2015 (330) ELT 711 (Tri-Del)] it has been held that the MS items used for fabrication of capital goods is eligible for credit. The certificate issued by the Chartered Engineer also establishes the use of the MS items as well as the purpose for which the capital goods are used and the nature of them being essential to the process of manufacture. In the case of ICL Sugars Ltd., (supra) the Hon ble High Court of Karnataka had occasion to analyse whether storage tanks are capital goods and whether the credit is admissible even though they are fixed to the earth. The issue was held in favour of the assessee. In view of the above, I hold that the credit is admissible on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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