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Galaxy Surfactant Ltd. Versus Commissioner of Central Excise, Belapur

2017 (12) TMI 271 - CESTAT MUMBAI

CENVAT credit - capital goods - angles, channels, beams, nut-bolts, guides, etc, used to manufacture the storage racks for use in their factory - Held that: - storage racks or crate would qualify as accessories to the capital goods as defined under the clause (1A) of the definition of capital goods but angles, channels, etc. are not by themselves storage systems and therefore, they are only parts of such accessories. The definition does not cover parts of the accessories of capital goods and the .....

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S.V. Nair, Asst. Comm. (AR) for respondent ORDER Per: Raju 1. The appellants were denied Cenvat Credit on the articles used to manufacture the storage racks for use in their factory. Aggrieved by the said order, the appellants are before the Tribunal. 2. Ld. Counsel for the appellant argued that they are claiming the Cenvat Credit on angles, channels, beams, nut-bolts, guides, etc. which are used by them in assembling vertical storage racking system used for storing finished goods and raw materi .....

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ished goods are accessories to the manufacturing systems and therefore, the said items would be covered under the definition of input under Rule 2 (k) of the Cenvat Credit Rules, 2004. The said decision relies on the decision of the Larger Bench of the Tribunal in the case of Banco Products (India) Ltd. - 2009 (235) ELT 636 (Tri-LB) wherein credit of plastic crates used for material handling in the factory was allowed. The said decision also relies on the decision of Hon ble Apex Court in the ca .....

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rival submissions. I find that the appellants have claimed credit on angles, channels, beams, nut-bolts, guides, etc. under the description of capital goods as defined under Rule 2 (a) (i) of the Cenvat Credit Rules, 2004. The said definition reads as follows: (a) "capital goods" means:- (A) the following goods, namely:- (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.02 and sub-heading No. 6801.10 of the First Schedule to the Excise Tariff Ac .....

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include any equipment or appliance used in an office; or (1A) outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory; or (2) for providing output service; 4.1 The appellant have claimed that the said goods are components, spares and accessories of the goods specified at (i) & (ii). It is seen that steel racks when manufactured would fall under Chapter 73 of the CETA and Chapter 73 is not covered under Sl.No. (i) of the d .....

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