Cenvat credit on construction materials upheld for storage tank and pollution control equipment used as capital goods.

Cenvat credit was admissible on steel and cement used to construct a storage tank and pollution control equipment because both fell within the definition of capital goods under the Cenvat Credit Rules, 2004. Inputs used in the manufacture or construction of capital goods used in the factory also qualified for credit. The fact that the storage tank was immovable property did not by itself exclude it from the credit scheme. The 2009 amendment barring credit on cement, angles, channels, CTD bars, TMT bars and similar items applied to factory sheds, buildings, foundations and supporting structures, not to goods used for constructing capital goods themselves.

---

---

Issues: Whether duty paid on steel and cement used for construction of a storage tank and pollution control equipment was admissible as Cenvat credit.

Analysis: Storage tanks and pollution control equipment fall within the definition of capital goods under the Cenvat Credit Rules, 2004. Inputs used in the manufacture or construction of capital goods used in the factory also qualify as inputs for Cenvat credit purposes. The fact that a storage tank is immovable property does not by itself take the case outside the credit scheme. The 2009 amendment excluding cement, angles, channels, CTD bars, TMT bars and similar items applies to construction of factory sheds, buildings, foundations or supporting structures, and does not negate credit where such goods are used for construction of capital goods themselves.

Conclusion: Cenvat credit on the steel and cement used for construction of the storage tank and pollution control equipment was admissible, and the assessee succeeded.

---