TMI Blog2018 (9) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... process or not? Held that:- Biomass Gasifier Unit is an manufacturing unit. That will certainly fall under the definition of apparatus or spare parts or accessories. In such circumstances, the goods used in the manufacturing process shall be taken as capital goods and the benefit under Section 19(3) shall be allowed. In the case of Thiagarajar Mills (P) Ltd., vs. Additional Commissioner (CT) (Revision petition), Ezhilagam, Chepauk, Chennai and others [2018 (8) TMI 1562 - MADRAS HIGH COURT], this Court has held that wind mill used for the purpose of generation of energy utilised in the manufacturing process will also fall under the category of capital goods . The renewable energy device spare parts, Boilers, Boiler components a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces, along with the technical report that renewable energy device spare parts, Boilers, Boiler components and materials for Erection of Boilers have been purchased along with the devices, which are used in running the machinery in producing kraft paper. However, the respondent has passed final orders confirming the proposals, which reads as under: From the above, it is viewed that the machinery used for producing Kraft paper shall alone fall under capital goods and not the power produced for functioning the machinery. Using the Boilers, Boiler components materials installed in the factory premises of the dealers and said to be used to produce steam used to dry the moisture of the paper being manufactured and also generate power for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processing, packing or storing of goods in the course of business excluding civil structures and such goods as may be notified by the Government; 3. As per Section 19(3) of the Act, ITC shall be allowed in the manner prescribed to every registered dealer in respect of the purchases of capital goods ( for the use in the manufacture of taxable goods). 4. From perusal of the materials filed before this Court, it is seen that manufacturing of kraft paper involves series of processes. The raw materials are sent to Bunker and from Bunker to Boiler and from Boiler to Super Heated Steam and from Super Heated Steam to Turbine and after drying, the paper is made ready. In the process, Biomass Gasifier Unit, (renewable energy device) is also u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs reported in [2018] 54 GSTR 420 (Mad), this Court has held that wind mill used for the purpose of generation of energy utilised in the manufacturing process will also fall under the category of capital goods . 11. In these cases, the renewable energy device spare parts, Boilers, Boiler components and materials for Erection of Boilers are integral parts or integral apparatus or accessories in the manufacturing process and therefore, it should be construed as capital goods . The orders passed by the respondent that it does not involve direct or indirect production of kraft paper, is not acceptable. Therefore, it is reiterated that any apparatus or accessories, which is utilised in manufacturing process, shall fall under the defini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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