Cenvat credit on clinker silo construction upheld prima facie as storage tank, securing stay of recovery.

Cenvat credit on steel items and cement used to construct a clinker silo was contested on the basis that the silo functioned as a storage tank used in the cement manufacturing process. The revenue treated the structure as a non-qualifying civil construction and denied credit, while the appellant relied on the Cenvat Credit Rules and prior decisions supporting the storage-tank characterisation. At the stay stage, the materials showed a prima facie case for treating the silo as capital goods eligible for credit, and waiver of pre-deposit with stay of recovery was granted.

---

---

Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in respect of the demand of Cenvat credit and penalty relating to the clinker silo.

Analysis: The dispute concerned Cenvat credit taken on steel items and cement used in constructing a clinker silo used for storage of clinker in the cement manufacturing process. The pleaded case was that the silo functioned as a storage tank within the definition of capital goods under the Cenvat Credit Rules, while the revenue treated it as a non-qualifying civil construction and denied credit. At the stay stage, the materials cited showed a prima facie basis for treating the silo as a storage tank used in manufacture, and the issue was already supported by prior decisions relied upon by the appellant.

Conclusion: The appellant was granted waiver of pre-deposit and stay of recovery.

---