TMI Blog2022 (5) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... s and supporting structures are essential part of the machinery, so as to run the same for manufacture of dutiable finished products. Accordingly, the Hon ble High Court held that the steels items used in the plant and machinery and supporting structures are eligible for Cenvat credit. In the present matter use of the impugned goods were not disputed by the department, further revenue also not disputed the Joint verification report duly signed by the Deputy Commissioner, Central Excise, Gandhidham and representative of assessee. The said verification report has categorically described the usage of the materials under dispute on which cenvat credit has been availed by the assessee. The issue of utilization of goods for repairs and maintenance of capital goods is no longer res integra and the same have been decided in favour of the assessee by number of decisions. If any items is used for repair and maintenance of the plant and machinery, the same would be eligible for Cenvat credit. Whether the disputed items in question are also used for repairs/maintenance of capital goods by way of replacement of old/worn out parts/components of such capital goods? - HELD THAT:- This fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the factory. Nothing is available on record to show that guesthouse is used for any other purpose. In view of this fact, since guesthouse used for operations of factory which has direct nexus with factory which produces excisable goods therefore Cenvat credit is admissible to the appellant on the furnitures used in Guest House of the factory. The Revenue s appeal being devoid of merit is dismissed - Decided against Revenue. - Excise Appeal No.488 of 2011 and 525 of 2011 - A/10423-10424 /2022 - Dated:- 10-5-2022 - MR. RAMESH NAIR, MEMBER (JUDICIAL) AND MR. RAJU, MEMBER (TECHNICAL) Shri Dharmendra Kanjani, Superintendent (AR)for the Appellant Shri R. Subramanyam, Advocate for the Respondent ORDER These two appeals are filed one by the Revenue and another by the assessee against O-I-O No. 01/COMMR/2011 dtd. 06.01.2011 passed by Commissioner, Central Excise, Ahmedabad-III. 1.1 Briefly stated the facts of the case are that the appellant had availed total Cenvat credit of Rs. 1,92,67,294/- during the period June 2007 to December 2007 on various items viz. M.S Beams / M.S. Pipes/ Plates / Channels / Sheets / Flats/ Chain / Anodes / Tube / Conveyor Belts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ials that is required by the laboratory, are used in the quality check and quality check being a vital part of the manufacture process, credit taken on such materials cannot be denied. 2.2 He further submits that cenvat credit amount of Rs. 9,88,421/- was taken on Tower and SS Structures, ACSR conductor, MS Plate and Shell albida HD2 which were used in the erection of transmission towers installed from the power plant to the factory for bringing electricity. The electricity is used in the functioning of the various plant and machinery, in the factory. Hence Cenvat Credit be allowed. He placed reliance on the Judgment passed in their own case in the matter of Sanghi Industries Ltd. Vs. CCE, Rajkot 2006(206)ELT 575 (Tri. Del). 2.3 He also submits that cenvat credit amount of Rs. 11,39,646/- was availed on furnitures which were used in the guest house located in the factory. The cenvat cannot be denied on furnitures used for business purpose. Without prejudice he also submits that have already paid this amount during the Misc. Application hearing for stay. The Credit was taken but subsequently reversed and therefore, it would amount to non-availment of credit. He prayed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal-LB)], have been overruled by Hon ble Gujarat High Court in the case of Mundra Port [2015 (39) S.T.R. 726 (Guj.)] and by Hon ble Madras High Court in the case of India Cement Ltd. reported at 2015 (321) E.L.T. 209 (Mad.), wherein it is categorically held that steel items and supporting structures are essential part of the machinery, so as to run the same for manufacture of dutiable finished products. Accordingly, the Hon ble High Court held that the steels items used in the plant and machinery and supporting structures are eligible for Cenvat credit. In the present matter use of the impugned goods were not disputed by the department, further revenue also not disputed the Joint verification report duly signed by the Deputy Commissioner, Central Excise, Gandhidham and representative of assessee. The said verification report has categorically described the usage of the materials under dispute on which cenvat credit has been availed by the assessee. We also find that the issue of utilization of goods for repairs and maintenance of capital goods is no longer res integra and the same have been decided in favour of the assessee by number of decisions. If any items is used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pex court judgment in Vikram Cements2006 (197) E.L.T. 145 (S.C.) it was observed as under : 6.3 We are of the view that the ratio of the above-mentioned judgments of the Apex Court is squarely applicable to the facts of this case, as the Renu-sagar Power Plant, which is a captive power plant of the appellant company, together with the cement factory of the appellant company constitute one integrated unit and it is not disputed that except of small quantity of electricity generated being used in the Renusagar township, the remaining quantity is used in the appellant s factory for production of aluminium. Therefore, the Cenvatcredit in respect of capital goods and inputs used in the captive power plant located at Renusagar cannot be denied just because the power plant is located at some distance from the factory. 6.4 We also find that the Apex Court in the case of State of U.P. v. Renu-sagar Power Company reported in (1988) 4 SCC 59 has held that Renusagar Power Plant had no separate and independent existence apart from and independent of Hindalco (the appellant) and therefore the Renusagar Power Plant has to be treated as captive power plant of Hindalco. 7. However, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad 2015 (321) E.L.T. 267 (Tri. - Bang.) the Tribunal held as under : 2 . After hearing both the sides, I find that in this case air-conditioner has been used within the factory in the control panel room to keep the temperature down. There is no dispute that it has been installed in the factory. As regards furniture, the learned counsel relied upon the Board s circular issued by the Board vide Circular No. 943/4/2011-CX., dated 29-4-2011. In the circular it was mentioned that goods such as furniture and stationery used in an office within the factory are goods used in the factory and are used in relation to the manufacturing business and hence the credit of same is allowed . This circular was issued after the amendment of Cenvat Credit Rules specifically denying benefit of Cenvat credit on certain activities which are not at all related to manufacture. The issue before me relates to the period April 2007. According to the definition of input as it existed during the relevant period, inputs used in the factory for any other purpose the credit is admissible. In this case there is no denial of the fact that furniture had been used within the factory. Under the circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X
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