TMI Blog2023 (6) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... nder definition (i) and (ii) also are termed as capital goods as per the definition of capital goods under Rule 2A of Cenvat Credit Rules, 2004. The Hon ble High Court of Karnataka in the case of COMMISSIONER OF CENTRAL EXCISE, BANGALORE-II VERSUS SLR STEELS LTD. [ 2012 (9) TMI 169 - KARNATAKA HIGH COURT] held that appellate authority committed a serious error firstly in holding that the storage tank is an immovable property and secondly, on the ground that it cannot be bought and sold in the market, the criteria which is totally unwarranted. These iron and steel items have been used for manufacturing/processing of final products - In that circumstances, any iron and steel items used for fabrication of those tanks are entitled for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as defined in Rule 2A of the Cenvat Credit Rules, 2004. Therefore, the items, which were used in the manufacture of the said tanks do not fall under Explanation to Rule 2 (A) of the Cenvat Credit Rules, 2004, are not entitled for cenvat credit. 2.2 Therefore, the proceedings were initiated and the cenvat credit was denied. 2.3 Against the said order, the appellant is before us. 3. The ld.Counsel for the appellant, submits that the items in question has been utilized to manufacture the tanks and the cenvat credit sought to be denied on the premises that these are immovable property and therefore, these cannot be qualified as capital goods. It is the submission of the ld.Counsel that the Adjudicating Authority has gone beyond the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered the submissions. 6. We find that the capital goods have been defined under Rule 2A of Cenvat Credit Rule, 2004 which is reproduced hereunder for reference of convenience. In order to answer this question, it is necessary to look into the definition of capital goods as contained in Cenvat Credit Rules, 2004 which reads as under: (A) The following goods, namely: (i) all goods falling under Chapter 82, Chapter 84, Chapter 86, Chapter 90. (Heading 6805, grinding wheels and the like, and parts thereof falling under Heading 6804) of the First Schedule to the Excise Tariff Act; (ii) Pollution control equipment (iii) components, spares and asccessories of the goods specified at (i) and (ii), (iv) moulds and dies, jigs and fix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods at intermediate stage. We find that only the goods falling under Chapter 82, 84, 95 and 90 are falling under the definition of capital but they are components, spares and accessories falling under definition (i) and (ii) also are termed as capital goods as per the definition of capital goods under Rule 2A of Cenvat Credit Rules, 2004. The Hon ble High Court of Karnataka in the case of SLR Steels Ltd. (Supra) held as under: Therefore, the notification of the Legislature is very clear tht it is only the inputs used in the manufacture or construction of capital goods which is construed as input and cenvat credit is available on the duty paid in purchase of such inputs. If the cement, angles channels, Centrally Twister Deform ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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