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M/s Deevya Shakti Paper Mills Pvt Ltd. Versus CCE, C & ST, Hyderabad-III

2017 (1) TMI 230 - CESTAT HYDERABAD

Denial of CENVAT credit - MS rods, Ms angles, channels, joists, beams, aluminium sheets etc. - denial for the reason that MS items like angles etc., do not fall within the definition of capital goods or inputs - Held that: - It is seen that the MS items have been used for fabrication of storage tanks which are used for storing water, chemicals, finished products, pulp etc. The definition of capital goods includes the word “storage tanks” - In the case of ICL Sugars Ltd., [2011 (4) TMI 1065 - KAR .....

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r 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 MS rods, Ms angles, channels, joists, beams, aluminium sheets etc., under the category of capital goods/inputs. After due process of law the .....

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anks. An amount of ₹ 5,46,222/- was availed under the category of capital goods which was used for construction of silos, storage tanks which was used for storage of water, pulp, chemical tanks, vat for post calendar broke chest, common condensate tank, chemical solution preparation tank, reject tanks, vaccum separator tanks. That appellants produced a Chartered Engineer Certificate to establish the details and purpose for which the MS items were used. It is also pointed out by the Ld. Cou .....

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n 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 fabricat .....

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for the reason that MS items like angles etc., do not fall within the definition of capital goods or inputs. The department also relies upon the decision laid in M/s Vandana Global Ltd., (supra). On perusal of records it is seen that the appellant has stated in their reply to the SCN the details and purpose for which the MS items were used. It is seen that the MS items have been used for fabrication of storage tanks which are used for storing water, chemicals, finished products, pulp etc. The d .....

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