TMI Blog2015 (11) TMI 1883X X X X Extracts X X X X X X X X Extracts X X X X ..... as capital goods. It that be so, any accessories spares or components used in the repair of manufacture or fabrication of machinery, which is further used for manufacture of sugar and molasses would be eligible for the benefit of Cenvat credit. In M/S. INDIA CEMENTS LTD. VERSUS THE CUSTOM, EXCISE AND SERVICE TAX THE COMMISSIONER OF CENTRAL EXCISE [ 2015 (3) TMI 661 - MADRAS HIGH COURT ], the Hon ble Madras High Court have held that M.S. Rod, Sheet, M.S. Channel/Plate/flat, etc, used for erection/fabrication of structural support for various machines like Crusher, Kiln, Hooper, etc, without which such structural, machinery could not be erected and would not function, held are eligible for Cenvat credit under Rule 2(a)(A) of CCR, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r authorities which itself shows that these are being used in the machines or repair fabrication of machinery which produce the final product i.e. sugar and molasses. It is his submission that the issue is squarely covered by the decision of the Tribunal in the case of Uttam Sugar Mills Vs CCE Ghaziabad 2006 (74) RLT 697 which relied upon the decision of the Tribunal in the case of Simbholi Sugar Mills 2000 (39) E.L.T. A-294. 4. The learned DR on the other hand, submits that these items could not be considered as capital goods nor they could be considered as inputs. It is his submission that these items did not play any specific role directly in the production of Sugar. 5. Considered the submissions made by both sides at length and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e plain reading of the above reproduced paragraph, it would indicate that these goods were used in repair/fabrication of machines or as accessories which are required for the purpose of manufacture of sugar. Further the Central Excise Tariff Act, 1985 has specifically indicated, the machines which are used for manufacture of sugar would fall under Chapter heading 84.30. This would indicate that all the machineries that are used in the sugar factory for the manufacture of sugar would fall under heading 8438.20 and eligible for Cenvat credit as capital goods. It that be so, any accessories spares or components used in the repair of manufacture or fabrication of machinery, which is further used for manufacture of sugar and molasses would be el ..... X X X X Extracts X X X X X X X X Extracts X X X X
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