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TMI Blog2017 (4) TMI 1021X X X X Extracts X X X X X X X X Extracts X X X X ..... nts, it was observed that during the period September 2008 to July 2011, the appellants have availed CENVAT credit on Angles, Channels, Plates, Sheets to the tune of Rs. 37,14,674/- under the category of capital goods. Further, they had availed credit of service tax on various input services to the tune of Rs. 9,98,626/- which was observed to be ineligible. A show cause notice was issued raising the above allegations and after due process of law, the original authority confirmed the demand, interest and imposed equal amount of penalty. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, the Ld. Counsel Sh. G. Prahlad submitted that the appellant had used the MS items for fabrication of v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring cement. They are in the nature of storage tanks. The details of the quantity of iron & steel used for fabrication as well as credit availed on this is shown as under: Details of Iron & Steel Qty (MT) Amount of CENVAT Credit involved Whether CENVAT credit availed Iron and steel items used for Civil Consumption Pre 07.07.2009 1166.69 Rs.62,69,293 NO Iron and Steel items used for Fabrication & Erection (Mechanical related consumption) pre 07.07.2009 691.29 Rs.37,14,673 (DISPUTED credit) YES Iron and Steel items used for Fabrication & Erection Pre 07.07.2009 29.65 Rs.1,59,304 NO Iron and Steel items remained as Scrap pre 07.07.2009 49.28 Rs.2,51,441 NO Iron & Steel items received post 07.07.2009 &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Construction of compound wall Rs.6,04,875/- Horticulture Rs.95,293/- Lahari Resorts (Accommodation Service) Rs.8,279/- Wagon shed I & II fabrication (erection & Commissioning service) Rs.28,809/- Erection of Street Pole (erection & Commissioning service) Rs.8,253/- Insurance services Rs.4,628/- PF reimbursement (Manpower services) Rs.51,720/- 5. The Ld. Counsel was fair enough to concede that an amount of Rs. 498/- is availed in respect of rent-a-cab services for the period after 01.04.2011 and that the same is not eligible for credit. Similarly, an amount of Rs. 84,587/- pertains to credit availed on services relating to construction of compound wall and that the same is not eligible for credit post 01.04.2011. 6. Against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Rule 2(a)(A)(i) and (ii) of the definition of capital goods. However, the appellant stated that these items were used for the fabrication of plant and machinery viz. Silos, Unloading Pit, Packer belt conveyor, Truck loading machine, Bucket elevators. The lower authority held that the Silos are very huge in size and they piece by piece which has resulted in emergence of an immovable property. The system of plant consisting of various individual equipments, components etc. are erected at the site, piece by piece. It is not the case that entire silos/ plant was manufactured elsewhere and then removed to the site for erection. From the above, the lower authority held that the silos emerged only at the site after they were erected piece by pi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erstwhile Central Excise Rules, 1944 - Rule 2(a)(A) of CENVAT Credit Rules, 2004 (para 13). From the above, I find that the decision is not applicable in the instant case, as the appellant did not use the impugned Iron & Steel items for manufacture of specified capital goods."" 9. The authorities below had proceeded to held that after fabrication and fixing to earth the equipments cannot be treated as capital goods. The issue whether the MS items used for fabrication of capital goods is eligible for credit, has been settled in the judgements relied upon by the appellant stated supra. In the case of M/s Sanghvi Forging & Engineering Ltd. (supra), the Tribunal has held that although the credit is availed under the category of capital goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Vadodara-I [2013 (32) S.T.R. 622 (Tri. Ahmd)], the Tribunal discussed the eligibility for the period prior to 01.04.2011 and has held that credit on services relating to construction of compound wall is eligible. The relevant paragraph is reproduced as under: "7. So far as admissibility of CENVAT credit on construction services utilized for construction of compound wall around the factory is concerned, it is observed that during the relevant period, construction services utilized for establishing the factory were eligible for CENVAT credit. A compound wall around the factory is essential to demarcate the registered factory premises and also to save the manufactured goods from pilferage and potential clandestine removal. Such a compound w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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