TMI Blog2017 (12) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... oil - Held that: - this has been used in Juice Sulphiter and raw juice through lining, in the factory of production. As they do not qualify under definition of capital goods, the same are covered under the definition of input and credit taken accordingly - there is no dispute that these items have been used in the factory of production for manufacture of taxable/dutiable goods - credit allowed. CENVAT credit - MS Angles - MS Channels - Held that: - MS Angles are used in enhancing the capacity and modification of dryer house equipment, namely sugar beater, hopper, etc. These angles have also been used for staging and supporting structures of equipments, but not used as civil work. Accordingly, these angles, etc., qualify as capital goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g both the parties. 2. The issue in this appeal relates to allowability of Cenvat credit taken on items like welding electrodes, SS Coil, MS Angles, MS Channels and Joists. The appellant is a sugar mill engaged in the manufacture of sugar and molasses from sugar cane. They have taken Cenvat Credit during the period April, 2003 to June 2003. Vide show cause notice dated 26 April, 2004 objection was raised as regards allowability of credit on the aforementioned items. Vide order in adjudication dated 22 October, 2008, out of the proposed disallowance of Cenvat Credit ₹ 4,02,790/-, disallowance was upheld for ₹ 2,92,317/-, whereas credit amounting to ₹ 1,10,453/- was held allowable; Being on items like Bush for Bagasse Car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Chhattisgarh High Court in Ambuja Cements Eastern Ltd reported at 2010-TIOL-309-HC-Chhattisgarh-CX and also the ruling of Hon'ble Rajasthan High Court in Hindustan Zinc Ltd reported at 2008-TIOL-408-HC-Raj-CX. Accordingly, following the precedent ruling, I hold Cenvat Credit on welding electrodes is allowable. 6. The next item is regarding SS coil. It is stated that this has been used in Juice Sulphiter and raw juice through lining, in the factory of production. As they do not qualify under definition of capital goods, the same are covered under the definition of input and credit taken accordingly. It is further urged that there is no dispute that these items have been used in the factory of production for manufacture of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 209 the Hon ble Madras High Court have held that Cenvat Credit on MS rods/sheet, MS Channels, etc. used for erection of capital goods that is fabrication of structurals to support various machines like crusher, kiln, hoppers etc. is available as without such structure, machinery could not be erected and would not function, which is not disputed. Accordingly, the Cenvat Credit on the items in question was available. 8. To sum up the appeal is allowed and the impugned order is set aside to the extent, it has disallowed the Cenvat Credit amounting to ₹ 2,92,317/-. Penalty retained by learned Commissioner also stands set aside. The appellant shall be entitled for the consequential benefits in accordance with law. (Dictated and p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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