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TMI Blog2017 (5) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Tariff Act, 1985 and are availing and utilizing CENVAT credit on inputs, capital goods and input services. Department noticed that the appellant had wrongly taken cenvat credit for the period 3/2009 to 12/2009 on paper adhesive tapes, gland packing, MS plates, chequered plate, MS channels, MS beam, MS angle, Aluminium rolled products, aluminium profiles, aluminium toughened sheets, MV parts, etc., falling under Chapter Heading No.48, 68, 72, 73, 76 and 87 of the Central Excise Tariff Act, 1985 as capital goods. It was also found that the Education Cess had been calculated @ 3% instead of 2% and further taken credit two times in respect of Invoice No.691. Total wrongly availed credit was calculated as Rs. 6,33,342/- out of which th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant and held that appellant is eligible to avail the CENVAT credit in respect of items as mentioned in para 14 of the decision of the Commissioner. The confiscation and redemption fine imposed by the lower adjudicating authority was also set aside by the Commissioner (A), hence the present appeal. 3. Heard both the parties and perused the records. 4. The learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed by misconstruing the definition of capital goods and also against the binding judicial precedents on the same issue. She further submitted that the items on which credit has been availed are used only as components of various plants/machinery if not as capital g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vered in the definition of capital goods on which the credit was availed. She also produced the literature pertaining to 230 TPD rotary kiln as well as 11 TPD chlorine dioxide plant to prove that all these items have been used for providing support to this rotary kiln and chloride oxide plant without which the main machinery cannot function. She further submitted that all these items on which CENVAT credit has been denied are parts of platform and ladder which are operational component of 230 TPD rotary kiln falling under Heading 8417 as component of capital goods. She also submitted that item Heading 13 (b) are components used in the fibre line which is capital goods and is an essential part of the paper manufacturing plant of the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 230 TDP Rotary Kiln, I find no reason to disallow the credit on these items. Further in the case of Commissioner of Customs and Central Excise, Bhopal vs. Prakash Industries Ltd., it has been held that the angles, channels, joists, beams used in the manufacture of support structure of various machineries, sheds, platforms walkways, galleries, staircases without which the machinery cannot run and the CENVAT credit was held to be entitled to the appellant. Considering the various case laws cited supra as well as the uses of components as operational component of 230 TDP Rotary Kiln and fibre line, I am of the view that the appellant is entitled to CENVAT credit on these items and therefore to that extent, I set aside the impugned order an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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