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of <h1>Tribunal rules in favor of appellants granting credit for inputs & setting aside impugned orders</h1> <h3>M/s Jain Carbide & Chemicals Limited, M/s Hira Power and Steels Limited Versus CCE, Raipur</h3> The Tribunal ruled in favor of the appellants on all issues. They were allowed credit for inputs used in setting up a power plant outside the factory, ... CENVAT credit - strips, angles, channels, plates, beam etc - whether the denial of cenvat credit on the ground that power plant is situated outside the factory of the production and power plant, Induction Furnace etc. are immovable properties and are not goods, justified? - Held that: - reliance placed on the appellant's own case HIRA POWER & STEEL LTD. Versus COMMISSIONER OF C. EX., RAIPUR [2008 (3) TMI 225 - CESTAT NEW DELHI] where the benefit, in the same set of facts, was allowed for the inputs used in fabrication of captive power plant situated adjacent to the factory of production. It was observed by the Tribunal that the appellant submitted the revised site plan and are entitled for credit in respect of inputs used in fabrication of power plant. Therefore, the appellants are entitled for credit in respect of the inputs used in fabrication of captive power plant. Regarding the issue related to angles, channels, plates used for fabrication of various capital goods, it appears that the issue is squarely covered by the decision of the Tribunal in the case of SKS Ispat and Power Ltd. vs. CCE, Raipur [2016 (10) TMI 479 - CESTAT NEW DELHI]. The issue regarding dumper and parts thereof, the assessee is using dumper for raw material handling and transportation of raw material within the plant. The dumpers are owned by the appellant. In the case of M/s Aditya Cement vs. CCE, Jaipur [2016 (9) TMI 1127 - CESTAT NEW DELHI] the issue was decided in favour of the assessee. CENVAT credit allowed - appeal allowed - decided in favor of appellant. Issues involved:Credit disallowed for inputs used in setting up a power plant outside the factory; Credit disallowed for inputs used in fabrication of various capital goods; Use of dumpers for raw material handling; Eligibility for availing modvat credit on iron, steel, and railway track materials.Analysis:Issue 1: Credit disallowed for inputs used in setting up a power plant outside the factoryThe appellants, engaged in manufacturing Ferro Alloys, set up a 20 MW captive power plant adjacent to their factory. The credit for inputs used in the power plant was disallowed as it was considered outside the factory of production and immovable property. However, citing a previous case where credit was allowed for a similar setup adjacent to the factory, the Tribunal ruled in favor of the appellants, stating they are entitled to credit for inputs used in setting up the captive power plant.Issue 2: Credit disallowed for inputs used in fabrication of various capital goodsThe Tribunal referred to a previous decision involving SKS Ispat and Power Ltd., where the issue of using angles, channels, and plates for fabrication of capital goods was addressed. Relying on this precedent, the Tribunal set aside the impugned order on this issue, allowing the appellants to claim credit for inputs used in the fabrication of capital goods.Issue 3: Use of dumpers for raw material handlingIn the case of M/s Aditya Cement vs. CCE, Jaipur-II, the Tribunal ruled in favor of the assessee regarding the use of dumpers for raw material handling within the plant. Citing this decision, the Tribunal decided in favor of the appellants, allowing them to claim credit for using dumpers for raw material transportation within the plant.Issue 4: Eligibility for availing modvat credit on iron, steel, and railway track materialsReferring to the principles established by previous court decisions, the Tribunal held that iron and steel ingots used as parts and components of machinery, as well as railway track materials essential for manufacturing processes, are eligible for modvat credit. Following this rationale, the Tribunal allowed the appellants to avail modvat credit on iron, steel, and railway track materials used in their manufacturing processes.In conclusion, the Tribunal set aside the impugned orders, ruling in favor of the appellants on all issues, and allowed the appeals while disposing of the miscellaneous application accordingly.
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