TMI Blog2018 (2) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... is very clear and the said goods do not fall under the definition of input/ capital goods - credit not allowed. Mobile Compactor Bin Storage System - Held that: - In normal parlance, the storage bin would be considered as capital goods but for cenvat credit goods have to fall under the definition of capital goods as it appears in the Cenvat Credit Rules 2004. The instant case is classifiable under chapter 94 and is thus clearly not covered under the definition of capital goods. Since the appellants have not countered the regarding the goods not fall under the said definition of the Cenvat Credit Rules the credit of the same cannot be allowed. FRP Ladder Trays - Held that: - the same are used for laying electric cable in the refinery. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty under Section 11AC is not justified. The issue regarding the recovery of interest is remanded to the original adjudicating authority to determine after examining the facts regarding utilisation of the said disputed credit or otherwise. Decided partly in favor of assessee, partly against assessee and part matter on remand. - E/86196/17 - A/85116/18 - Dated:- 31-1-2018 - Shri Raju, Member ( Technical ) Shri Sachin Chitnis, Advocate for the appellant Shri Sanjay Hasija, Supdt. (AR) for the respondent ORDER Per: Raju The appellants Hindustan Petroleum Corporation Ltd. are in appeal against denial of cenvat credit on capital goods. 2. Ld. Counsel for the appellants made a summary of the items on which the cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) used to connect the tanks to the DCS (Distributed control system) control room to monitor the activity in the tank; (ii) OPC tunneller provides an easy, reliable and secure way to communicate between networked computers. 5. Structrual Steel Rolled/ Structurals Neither capital goods nor inputs Used for the repairs and maintenance of the storage tanks of the refinery. 6. Impeller Spares Neither capital goods nor inputs Used in Kirloskar Ebara Impeller Pumps for better functioning and smooth operation of the refinery. 7. Switch Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above items are nothing but structures and its parts installed on uplifted cemented floor/ foundation which were executed under works contract. As discussed above, it does not fall in the ambit of definition of capital goods as defined under Rule 2(a) of CCR, 2004. Neither does it fall under definition of Input under Rule 2(k) of CCR 2004 and definitely hit the exclusion clause of definition of 'input'. The definition of Capital goods reads as under:- (a) capital goods means:- (A) the following goods, namely:- (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, (heading No. 6805, grinding wheels and the like, and parts thereof falling under heading 6804) of the First Schedule to the Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... motor vehicles which are capital goods for the assessee; The appellants have cited the reason as it appears in column 3 of the sr. No. 1 of table above. It is seen that the appellants have not countered the legal argument in the impugned order that the said goods did not fall under the definition of capital good/ inputs appearing in the Cenvat Credit Rules. While theoretically it can be considered the storage system Mezzanine floor would be capital goods but for the purpose of Cenvat Credit Rules the definition is very clear and the said goods do not fall under the definition of input/ capital goods. Thus the cenvat credit on the said goods is not admissible. 6.2. The second issue raised relates to mobile compactor bin storage syste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivity in the tank. It provides an easy reliable and secure way to networked computers. The said goods would fall under the accessories to the control system. Thus the credit of the same cannot be denied. 10. The next item relates to structurals used for repair and maintenance of tanks of the refinery. I find that the definition of capital goods specifically includes storage tanks. However, the items used for construction of tanks are not covered under the definition of capital goods. Tank and refinery being immovable property the credit of the structural steel for repair for tank also cannot therefore be allowed as inputs. 11. The next item are Impeller spares, switch board, both fall under chapter 84 and 85 of CET and thus are covere ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
