TMI Blog2022 (1) TMI 907X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and Tribunal have been consistent in holding that inputs which have gone into the manufacture of capital goods are admissible to credit notwithstanding the facts that said capital goods are embedded to the earth. The issue involved in Bharti Airtel is about the credit on Tower parts and pre-fabricated buildings in the case of service provider and as such cannot be applied in the case of credit as inputs used in the manufacture of capital goods which are further used in the manufacture of excisable goods - the appeal stands on merits of the case and that when the appeal survive on merits, other issue like penalty etc. become irrelevant. Appeal allowed. - Excise Appeal No. 89 of 2012 - A/85043 / 2022 - Dated:- 21-1-2022 - MR. S.K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r submit that the adjudicating authority has erred and failed to appreciate the fact that the impugned items are used in fabrication/ creation/ installation of capital goods falling under chapter 84; credit cannot be denied as the impugned items are used for the essential activity of manufacture. The learned Counsel submits that the issue is no longer res integra and is covered by various judgments of the Courts and Tribunal in its favor. He relies upon the following cases:- a. Vandana Global Ltd.- 2018 (16) GSTL 462 (Chattisgarh) b. Rajasthan Spinning and Weaving Mills Ltd - 2010 (255) ELT 481 (SC) c. Thiru Arooran Sugars - 2017 (355) ELT 373 (Mad.) d. CCE ST, Tiruchirapalli- 2017 (356) ELT 201 (Mad) e. ICL Sugars Ltd. - 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re further used for the manufacture of excisable goods cleared on payment of duty. The appellants have relied on so many cases and some cases are with reference to cement companies themselves. Whereas learned AR has relied upon the decision of Mumbai High Court in the case of Bharti Airtel etc. We find that Tribunal Chennai, in the case of Dalmia Cement (Bharat Ltd.) (supra) relying upon the decision of Karnataka High Court in the case of Hindalco Industries Ltd. (supra), held that credit on cement and steels used in manufacture of storage tank Silos is admissible to the appellant. We find that Bangalore Bench of this Tribunal in the case of KCP Ltd.- 2009 (237) ELT 500 (Tri-Bang) have gone into the issue in detail and have held 5- O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the fabrication of the silos. These silos are used within the factory production for storage of the final products. These silos are also capital goods because the storage tanks are mentioned in the list of the capital goods. So the very fact that inputs have been used in the manufacture of capital goods which are used in the factory is sufficient reason to give Cenvat credit. One need not examine whether such silos are duty paid or not. That is not the point at issue. The silos may be dutiable or may not be dutiable under certain conditions. The Revenue has taken the point that they are immovable. Therefore they are not dutiable. Hence the credit can be denied. That is not the correct approach. In other words, the dutiability of the cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 manufacture. Therefore it is very clear that the said inputs such as steel plates, sheets, etc. used in the fabrication of silos are entitled for the credit. Hence the impugned order has not merit and it is not legal and proper. Hence we allow the appeal with consequential relief. (Operative portion of the order has been pronounced in the open court on completion of hearing on 13-10-2008) 7. We find that the Courts and Tribunal have been consistent in holding that inputs which have gone into the manufacture of capital goods are admissible to credit notwithstanding t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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