TMI Blog2018 (7) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... f the goods falling under the above mentioned Chapters, i.e. 82, 84, 85 & 90 - As is very much apparent from the terminology used, the items are used purely for the construction activity - there is nothing on record as may show that these items have been used in such a structure which is used in or integrally connected with the process of actual manufacture of the final product - credit rightly denied. Penalty - Held that:- The Act of the appellant has rightly been held as suppression of relevant facts - Penalty upheld. The iron and steel items do not fall either under the definition of capital goods or under definition of inputs under Section 2(a) and 2(k) of the Cenvat Credit Rules, 2004 - Credit rightly denied - penalty upheld - ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Customs and Central Excise Jabalpur Division vide Order dated 31.05.2017 vide which the aforesaid recovery was confirmed alongwith the interest. In addition, the penalty as mentioned therein was also imposed upon the appellant. In an Appeal to this Order, Commissioner (Appeals) vide the impugned order dated 30.11.2017 has confirmed the Order-in-Original. Resultantly, the present Appeal. 3. I have heard Shri PC Kaushik, Ld. Consultant for the appellant and Shri H.C. Saini, Ld. DR for the Department. 4. It is submitted on behalf of appellant that the Department has wrongly denied the iron and steel items on which the appellant has availed the cenvat cedit to be the capital goods. It is submitted that all those items were used by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r covered under the definition of capital goods as in Rule 2 Sub-Rule (a) of CCR, 2004 nor in the definition of inputs as Rule 2(k) of the said Rules. While justifying the said Order, Appeal is prayed to be set aside. 6. After hearing both the parties, I am of the view that the moot question for the present adjudication is as to whether the iron and steel items (angle, channel, joist, bar plate sheet and coil) can clearly fall under the definition of capital goods and the inputs. The definitions are reproduced as below: Rule 2. Definitions. - In these rules, unless the context otherwise requires,- (a) capital goods means:- (A) the following goods, namely:- (i) all goods falling under Chapter 82, Chapter 84 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever. Explanation 2.- Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer; but shall not include cement, angles, channels, Centrally Twisted Deform bar (CTD) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods; The Sub Clause (i) of Rule 2a of CCR makes it very clear that any item other than those falling under Chapters 82, 84, 85 and 90 will not be a capital good. Apparently and admittedly the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling the cenvat credit on any goods which otherwise can be used for construction purposes, it has to be precisely shown that it is associated with the integral part of the process with which the machines engaged for the purpose can be utilized. There is nothing of this sort on record of the present case. Though the certificate of CE of the appellant was produced after it was demanded by the Adjudicating Authority below but that certificate is also miserably silent to certify these iron and steel items to have been used so integrally so as to entitle the appellant to avail the cenvat credit. The conduct of appellant for denying the reliability on CE certificate is also observed as improper for the reason as pointed out by the Ld. DR that on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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