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Commr. of Central Excise-Bolpur Versus M/s. S.R.M.B. Srijan Pvt. Ltd.

2018 (1) TMI 369 - CESTAT KOLKATA

CENVAT credit - inputs - capital goods - Held that: - the appellant had produced the Chartered Engineer Certificate to substantiate the use of the inputs and capital goods - the Commissioner (Appeals) had disallowed the credit of ₹ 16,46,940.00 in respect of items used on engineering goods, civil construction etc. It is a case of eligibility of the Cenvat Credit under the provision of the Cenvat Credit Rules and therefore the Commissioner (Appeals) rightly set aside the penalties. - Ap .....

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availing Cenvat Credit benefit on the inputs and capital goods under Cenvat Credit Rules, 2004. A Show Cause Notice dated 22.09.2008 was issued proposing to deny the Cenvat Credit on various inputs availed during the period from September 2007 to May 2008, which are not coming within the definition of Inputs or Capital Goods under the Rule, 2004. The Adjudicating authority confirmed the demand of Cenvat Credit of ₹ 40,01,750.00 along with interest and imposed penalty of equal amount of Cen .....

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given a finding elaborately in respect of allowing and disallowing the credit. For the proper appreciation of the facts of the case, the finding of the Commissioner (Appeals) in respect of allowing credit are given below : 8.The appellant have taken credit of ₹ 13,723/- in respect of duty paid on grease and ₹ 36,834/- in respect of duty paid on paint. I find that greases and paints are specifically mentioned in the definition of inputs. Hence the credit has been rightly availed by t .....

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ese. Further, I find that the appellant have availed credit of ₹ 1,78,348/- in respect of duty paid forged rolls and rough forged blocks. These items are used in the rolling mills for embossing the name of the manufacturer. Thus these goods are nothing but dies. Since dies are specifically mentioned in the definition of capital goods, therefore, the credit has been correctly availed. 10. A credit of ₹ 5,53,271/- has been taken in respect of HR plates/sheets and HSM plates, ₹ 2, .....

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t cooling the hot bars on these cooling and collecting beds, the finished products cannot be manufactured. In other words, these cooling beds, collecting pockets, roller tables are essential links in the chain of the manufacturing processes. The point for consideration is whether these cooling beds, roller beds and collecting pockets could be construed as capital goods? 11. Though the term accessory has used in the definition of capital goods, but t has not been defined anywhere in the Cenvat Cr .....

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) ELT 636 (Tri-LB) have held that plastic crates, which are used for internal transportation of the raw materials/semi-finished materials and finished goods from stores to processing machine and from one machine to another and to finished storage and accessories to the set of machines.So would be the case with cooling beds, roller beds and collecting pockets. These items add to the convenience and effectiveness of TMT machine in effectively cooling, collection of the hot rolled TMT bars. Thus I .....

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he definition of capital goods as given in rule 2 (a) of the Cenvat Credit Rules, 2004. HR Plates/sheets/angles and HSM plate and welding electrodes, which have used to manufacture cooling beds, roller beds and collecting pockets are inputs in terms of Explanation 2 in the definition of input in rule 2(k) of the Cenvat Credit Rules, 2004. Being inputs, the appellant has rightly availed credit of the excise duty paid on HR Plates/sheets/angles and HSM plate and welding electrodes. I, therefore, d .....

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tling/breaking. The appellant have also produced a certificate from Chartered Engineer to this effect. Being parts of the moveable EOT crane system (Chapter 84), these items are thus covered by the definition of capital goods, as defined in rule 2 (a) of the Cenvat Credit Rules, 2004. The appellant rightly availed credit in respect of these parts. 14. The appellant have availed credit of ₹ 10,260/- in respect of 1160 Block for S.B. Burners 4A . S.B. Burners are used in the oil/gas fired fu .....

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entitled to take capital goods credit. 6. The Learned A/R for the Revenue drew the attention of the Bench to the Grounds of Appeal. It is submitted that ERW Pipes are rejected ones as seen from the Invoices. Pre-engineered buildings are basically civil structure. FA-N-HG and FA-N/FA A-IS appeared to be not used in the manufacture as claimed by the Respondent. The Revenue strongly relied upon the decision of the Larger Bench of the decision in the case of Vandana Global Ltd Vs. CC Raigad 2010 (2 .....

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In terms of definition of capital goods as defined in rule 2(a) (A) (iv) of the Cenvat Credit Rules, 2004, credit of duty paid on these items are admissible as credit of capital goods. The Ld. Joint Commissioner while disallowing the credit availed on these items has not discussed anything in the impugned order. However, on appeal, the Ld. Appellate Commissioner allowed the credit as correctly availed. b) ERW Steel Pipe- Credit availed ₹ 76,866/- these are pipes used for conveying oil for .....

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and such pipes were made unable after minor rectification by way of welding. Since these item satisfies the definition of capital goods , denial of credit is bad in law. However, on appeal, the Ld. Appellate Commissioner allowed the credit as rightly availed. c) Paints and Grease : Credit availed ₹ 13,723/- and ₹ 36,834/-respectively Denial of credit on Paints and Grease is totally beyond the provisions of law. The definition as given in Rule 2 (K) (i) of Cenvat Credit Rules, 2004 ha .....

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ames of refractory material and hence satisfies the definition of capital goods as defined in Rule 2(a) (A) (v) of the Cenvat Credit Rules, 2004. In support of this , copy of invoices on which credit was availed on these goods were submitted to prove that these goods were cleared by the manufacturer under Tariff sub heading of refractory material. However, on appeal, the Ld. Appellate Commissioner allowed the credit as rightly availed. e) Pre-Engineered Building (Crane Functional Device) : Credi .....

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ification. A certificate issued by the manufacturer was submitted to justify the claim of the respondent. However, on appeal, the Ld. Appellate Commissioner allowed the credit as rightly availed. f) HR Plates/Sheets and HSM Plates, Angles, Plates, Welding Electrodes:- Credit have been taken of R.5,53,271/- in respect of H.R. Plates/Sheets and HSM Plates, ₹ 2,09,711/- in respect of angles, ₹ 4,08,221/- in respect of Plates, ₹ 82,435/- in respect of Welding Electrodes which was d .....

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