Cenvat credit on storage tanks and electrical components allowed where statutory capital goods definitions and invoices supported eligibility.

Cenvat credit was admissible on S.S. Dozer and M.S. Settler because storage tanks fall within clause (vii) of the definition of capital goods under Rule 2(a)(A) of the Cenvat Credit Rules, 2004, and the invoice evidence supported their classification. Credit on Copper Bus Bar was also allowable because it was used as a component, spare or accessory of electrical goods falling under Chapter 85 and thus qualified under clause (iii) of Rule 2(a)(A). The denial of credit was therefore unsustainable, and the impugned order was set aside.

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Issues: Whether Cenvat credit was admissible on S.S. Dozer, M.S. Settler and Copper Bus Bar as capital goods.

Analysis: The invoice relied upon by the assessee showed the disputed goods and their tariff classification, so the objection that no documentary evidence had been produced was unsustainable. Storage tanks fall within clause (vii) of the definition of capital goods under Rule 2(a)(A) of the Cenvat Credit Rules, 2004, and therefore credit on S.S. Dozer and M.S. Settler could not be denied. Copper Bus Bar was used as a component, spare or accessory of electrical goods falling under Chapter 85 of the Central Excise Tariff Act, 1985, and was eligible as capital goods under clause (iii) of Rule 2(a)(A).

Conclusion: Cenvat credit on the disputed goods was admissible and the denial of credit was unsustainable.

Final Conclusion: The impugned order was set aside and the assessee succeeded in full on the eligibility of credit.

Ratio Decidendi: Goods used as storage tanks or as components, spares or accessories of Chapter 85 electrical goods qualify as capital goods for Cenvat credit where the statutory definition so provides and the supporting invoice evidence is available.

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