TMI Blog2017 (3) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... d making use of these designs and drawings did not remain as excisable goods any more in as much as all these capital goods have been embedded to earth on foundation making up the entire cement plant. The property of designs and drawings are intangible and do not fall within the description of either inputs or capital goods - credit not allowed - appeal dismissed - decided against appellant. - E/56960/2013-EX[DB] - FINAL ORDER NO.50737/2017 - Dated:- 8-2-2017 - Mr. (Dr.) Satish Chandra, President and Mr. V. Padmanabhan, Technical Member Present Shri Hemant Bajaj, Advocate for the appellant Present Shri R.K. Manjhi, A.R. for the respondent ORDER The appellant is a manufacturer of cement falling under chapter 25 of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drawings have been made use of for the purpose of erection and commissioning of the cement plant and hence these are to be considered as inputs used in or in relation to manufacture of cement. The demand was also contested on the ground of limitation. He also relied upon several decisions to support their argument: i) J.K. Cotton SPG WVG Mills Co. Ltd. Vs. Sales Tax Officer, Kanpur 1997 (91) ELT 34 (SC). ii) CCE Vs. Rajasthan State Chemical Works, 1991 (55) ELT 444 (SC). iii) CC CCE Ghaziabad Vs. Samtel Color Ltd. 2013 (293) ELT 501 (All.) 5. Ld. Dr supported the impugned order. 6. The definition of input in Rule 2(K) of the Cenvat Credit Rules as follows: All goods, except light diesel oil, high speed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been received but for the intangible property in the form of technical know-how which is to be used for the purpose of setting up of the cement plant. In this view of the matter, the drawings cannot be considered as 'goods' fallings under Chapter 49 since these are intangible property. 8. These drawings do not fall within the definition of inputs in as much as they are not goods‟ used in or in relation to the manufacture of final products directly or indirectly. They can also not be considered as components, spares and accessories of capital goods. These drawings have been used in setting up of the cement plant which in turn consist of various capital goods such as calciner, cooler blender etc. The drawings cannot be consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l goods already manufactured and brought by them in the factory. Therefore, the arguments put forth by the notice are not tenable on this ground also. Moreover, the case laws cited by them are not directly applicable as in none of the cases the drawings and designs were claimed as inputs. In fact regardless of whether the cement plant erected and commissioned in the noticee s factory qualifies to be called movable or immovable property, the drawings and designs with the help of which the plant was erected and commissioned cannot be said to have been used in the sense of inputs are used. The credit on only those inputs is allowed which are used in manufacture of capital goods and as discussed supra the capital goods were not manufactured by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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