TMI Blog2017 (6) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... r the duty/taxes paid on transmission towers and their parts/spares. Admissibility of CENVAT credit for the input service of erection/ commissioning/ installation of transmission towers/ lines - Held that: - When the transmission towers/ lines have been held to be admissible input for claiming Cenvat credit input service of commissioning erection and installation of said transmission towers/lines would also be eligible to Cenvat credit - The Tribunal in the case of M/s Hindustan Zinc Ltd Vs CCE, Udaipur vide [2017 (5) TMI 233 - CESTAT NEW DELHI] has held that consultancy service irrespective of laying of pipelines for supply of water from dams to the mines of the appellant is an admissible service for claiming Cenvat credit - credit allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. On careful consideration of the submissions made by both the sides, we find that the issues that falls for consideration is whether the appellant is eligible to avail cenvat credit on the items which are used in the transmission line which has been erected as dedicated transmission line for the appellant s use. 6. The Adjudicating authority has in para 16.1 16.4 come to a conclusion that the transmission line which is laid down is undisputedly a immovable property but also is the dedicated line for the appellants factory. But held against the appellant only on the ground that if it is immovable property, Cenvat Credit cannot be allowed; also on the findings that the said transmission line do not have any relation to the proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is not manufacturer and, therefore, the provisions of Explanation 2 of Rule 2(k) would be applicable only to the factory and manufacturer. The appellant is neither having any factory nor he is manufacturer. The appellant is a service provider of port. We need not go into this question as to whether the appellant is a factory or manufacturer or service provider in view of the fact that it is not disputed by Mr. Y.N. Ravani, learned counsel appearing for the Revenue in this Tax Appeal that the appellant provides service on port for which he is getting jetty constructed through the contractor and the appellant has claimed input credit on cement and steel. The cement and steel were not included in Explanation 2 from 2004 up to March, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the appellant was entitled for input credit and the decision of the Division Bench of the Andhra Pradesh High Court squarely applies to the facts of the case and answered the question on which the appeal has been admitted. 9. In yet another case of Singhal Enterprises Pvt. Ltd. Vs. CC Raipur 2016-TIOL-2451-CESTAT-CC this Tribunal applying the ratio of user test on structural items used in fabrication of support structure allowed the Cenvat Credit of the duty paid on such structural items. We reproduce the ratio in para 13, 14, 15: 13 . Now we turn to the question, whether credit is admissible on various structural steel items, such as, MS Angles, Sections, Channels, TMT Bar etc., which have been used by the appellants in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 (255) ELT 481 (SC), wherein the Hon'ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The credit stands allowed in the light of Rule 57Q of the erstwhile Central Excise Rules, 1944. In the said judgment, the Apex Court has referred to the user test evolved by the Apex Court in the case of CCE, Coimbatore vs Jawahar Mills Ltd., 2001 (132) ELT 3 (SC), which is required to be satisfied to find out whether or not particular goods could be said to be capital goods. When we apply the user test to the case in hand, we find that the structural steel items have been used for the fabrication of support structures for capital goods. The appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pes are used exclusively for drawing the water and supplying it to the factory of the respondent therein, Cenvat Credit cannot be denied. 4.2. Considering the observations made in the Tribunal s decisions (supra), the appellant is entitled to the Cenvat credit for the duty/taxes paid on transmission towers and their parts/spares. 5. The next issue is regarding the admissibility of Cenvat credit for the input service of erection/ commissioning/ installation of transmission towers/ lines. When the transmission towers/ lines have been held to be admissible input for claiming Cenvat credit input service of commissioning erection and installation of said transmission towers/lines would also be eligible to Cenvat credit as claimed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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