TMI Blog2018 (1) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... -Original. On identical issue, this Tribunal in the case of Ultratech Cement Ltd. [2017 (6) TMI 796 - CESTAT BANGALORE] has allowed the CENVAT credit on identical items used for manufacture of capital goods. Credit allowed - appeal allowed - decided in favor of appellant. - E/26473/2013-SM, E/26474/2013-SM - Final Order No. 20001 20002 /2017 - Dated:- 1-1-2018 - Shri S. S. Garg, Judicial Member Mr. G. Shivadass, Advocate For the Appellant Mr. Naveen Kushalappa, AR For the Respondent ORDER Per : S.S. GARG The appellants have filed these two appeals against the common impugned order dated 6.2.2013 passed by the Commissioner (A), whereby the Commissioner (A) rejected both the appeals filed by the appellant and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat Credit Rules, 2004 in as much as the said items were not used in the manufacture of capital goods or components, spares or accessories as detailed under Rule 2(a)(A) of the said rules. They had not declared manufacture of any capital goods out of these items in their ER-1 returns so as to claim the credit under the input category in terms of Rule 2(k) of the said Rules. It was observed that the appellant had availed inadmissible credit amounting to ₹ 14,31,467/- during the period 05/2008 to 09/2008 , ₹ 17,57,199/- during the period 10/2008 to 03/2009 and ₹ 12,54,190/-during the period 04/2009 to 09/2009 respectively, on above said items falling under chapter 72 25 under the category of capital goods. Further, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ems used for the manufacture of capital goods viz., storage tanks and parts or components of capital goods during the period July 2009 to April 2010. He also submitted that steel and cement satisfy the definition of inputs under Rule 2(k) as they are used in relation to the manufacture of final product. It is his further submission that the storage tanks are covered under the definition of capital goods as per Rule 2(a) of CENVAT Credit Rules, 2004. The steel and cement are used in the manufacture of capital goods and therefore, are entitled to credit under the definition of inputs. For this submission, he relied upon the following decisions: * KCP Ltd. vs. CCE, Guntur: 2009 (237) ELT 500. * Bannari Amman Sugars LTd. vs. CCE: 2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts Special Economic Zone Ltd. vs. CCE: 2015 (39) STR 726 (Guj.) * M/s. Singhal Enterprises Pvt. Ltd. vs. Commissioner of Customs, Raipur: 2016-TIOL-2451 (Del.) 6.5 The learned counsel further submitted that the appellants have produced Chartered Engineer certificate which shows the use of cement and iron and steel items in the factory of the appellant and they have also produced an affidavit of the Works Manager. 7. On the other hand, the learned AR defended the impugned order and submitted that the impugned items i.e., MS channels, MS beams, joists, MS angles, HR steel plates and MS TMT bars, etc., are not specified within the scope of capital goods under Rule 2(a) of the CENVAT Credit Rules, 2004 inasmuch as the said items ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that the appellant produced the Chartered Engineer certificate along with his reply to the show-cause notice and this fact has been recorded in the Order-in-Original. Further, even before the Commissioner (A), the certificate of Chartered Engineer was produced along with memo of appeal but the same has not been considered. Further, I find that in view of the decision of Karnataka High Court in the case of SLR Steels Ltd. cited supra, it has been held that storage tanks is a capital goods specified in Rule 2(a) of CENVAT Credit Rules, 2004. Further, on identical issue, this Tribunal vide its Final Order dated 24.1.2017 reported in 2017-TIOL-2442 in the case of Ultratech Cement Ltd. has allowed the CENVAT credit on identical items used f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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