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2018 (3) TMI 622

of the materials. Hence, there is no reason to disagree with the findings of the Commissioner (Appeals) - The Tribunal in the case of Monet Ispat & Energy Limited Vs. Commissioner of Central Excise, Raipur [2016 (1) TMI 917 - CESTAT NEW DELHI] allowed the credit on the articles of Iron & Steel items - appeal dismissed - decided against Revenue. - Excise Appeal No. 75212/17, C. O. 75383/17 - Final Order No. FO/75224/18 - Dated:- 9-3-2018 - Shri P. K. Choudhary, Hon ble Judicial Member Sri D. Haldar, A.C. (A.R.) For Appellant Sri B. N. Chattopadhyay, Consultant (A.R.) FOR the Respondent ORDER Per Shri P. K. Choudhary Briefly stated the facts of the case are that the Assessee is engaged in the manufacture of M.S. Round, M.S. TMT Bar, Alloy Ste .....

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Mills Vs. CCE Delhi 2011 (270)ELT (465) (SC) structures manufactured out of duty paid inputs cannot be termed as component. It is seen from the record that the assessee contended that they had utilized Iron & Steel materials for manufacturing of Capital goods such as Chimney and Chimney Pipe, Roller Conveyor, Cooling Tower Pipe Line, Water pipe line etc. which are components or accessories of Capital Goods. The Adjudicating authority passed the Order relying on the decision of the Larger Bench of the Tribunal in the case of Vandana Global Limited Vs. CCE [2010 (253) ELT 440 (LB)]. 5. I find that the Commissioner (Appeals) passed the Order after examining the Case Laws, Jurisdictional Range Officer s Report and the use of the items. The .....

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of the Appellant on the ground that the same are supporting structures which are purportedly erected piece by piece at site, hence immovable and therefore not excisable goods. In this context it would be pertinent to refer the Adjudicator s observations on the JROs report as at para 5.2 above with regarding to the impugned goods being considered as components while some others as supporting structures. 5.10 It is obvious that the impugned goods such as like Chimney and Chimney pipes, Roller Conveyor, Cooling Tower pipeline, Water pipeline, Cooling Bed strips, Looping Tray , Base frame of re-heating Furnace, Base Rails, Panel Board etc. cannot be self standing and would require some support structural items for them to function. I do not se .....

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perusal of the above findings it is clear that the Commissioner (Appeals) allowed the credit on the Items-in-Question after examining the use of the materials. Hence, there is no reason to disagree with the findings of the Commissioner (Appeals).The Tribunal in the case of Monet Ispat & Energy Limited Vs. Commissioner of Central Excise, Raipur 2015 (330) ELT 711 (Tri-Del) allowed the credit on the articles of Iron & Steel items. The relevant portion of the said decision is reproduced below - 7. These steel items used in this manner by the appellant has not been factually disputed. However, the point of dispute is that the resultant fabricated items became part of structures which are embedded to earth and become immovable, thereby l .....

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support of capital goods. 8. Therefore, the notification of the Legislature is very clear that it is only the inputs used in the manufacture or construction of capital goods which is construed as input and Cenvat credit is available on the duty paid in purchase of such inputs. If the cement, angles, channels, Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (T.M.T.) and other items are used in the construction of factory shed, building or laying of foundation, the duty paid on such items the assessee would not be entitled to Cenvat credit. Similarly, though the assessee is entitled to Cenvat credit of cement and steel used in the manufacture of capital goods viz., storage tank, if any structure for support of capital .....

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eligible for Cenvat credit. Another allegation made in the show cause notice regarding various steel items having been used in the manufacture of structurals to support the other machinery, has not also been elaborated with evidence. For e.g., the credit was sought to be denied on steel items used for installation of conveyor system on the ground that these items are merely structures giving support to conveyor system. We find that conveyor system as a whole is rightly categorized as capital goods and unless it is established that certain structures are not part of the conveyor system, mere allegation that certain steel items are only supports will not be sufficient to deny the credit. Similarly, the allegation that silo is merely an item .....

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