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of <h1>Tribunal grants CENVAT credit on MS items & input services, providing relief to appellant</h1> <h3>M/s Ultratech Cement Ltd. Versus CC, CE & ST, Hyderabad-IV</h3> M/s Ultratech Cement Ltd. Versus CC, CE & ST, Hyderabad-IV - TMI Issues Involved:1. Eligibility of CENVAT credit on MS items (Angles, Channels, Plates, Sheets) used for fabrication of capital goods.2. Eligibility of CENVAT credit on service tax paid on various input services.Issue-wise Detailed Analysis:1. Eligibility of CENVAT Credit on MS Items:The appellants, engaged in the manufacture of cement, availed CENVAT credit on MS items used for fabricating various capital goods such as Bulk Loading Bin, Screw Conveyor, Trailer/Truck Loading Machine, Cable Galleries, Unloading Machine, and Silos. The original authority denied the credit, asserting that these items, once fabricated and attached to the earth, became immovable property and thus ineligible for credit under the definition of capital goods.The appellant argued that the MS items were used for fabricating capital goods and should be eligible for credit under the category of inputs. They cited several judgments, including *India Cements Limited Vs. CESTAT, Chennai* and *Ultratech Cement Limited Vs. CCE, Hyderabad-IV*, to support their claim that credit should be allowed even if availed under the wrong category, provided it is otherwise eligible.The Tribunal held that the fabricated goods, though immovable, should be considered as capital goods. It referenced the judgment in *Sanghvi Forging & Engineering Ltd. Vs CCE, Vadodara-I*, which allowed credit on inputs used for fabricating capital goods. Consequently, the Tribunal found the disallowance of credit on MS items unjustified and set aside the impugned order, allowing credit of Rs. 37,14,674/-.2. Eligibility of CENVAT Credit on Service Tax Paid on Input Services:The appellant also contested the denial of CENVAT credit on service tax paid for various input services such as Rent-a-Cab, Railway & Manpower for Railway Track maintenance, Housekeeping, Construction of compound wall, Horticulture, Accommodation services, Erection & Commissioning services, Insurance services, and PF reimbursement services.The Tribunal examined each service individually:- Rent-a-Cab Services: Credit availed prior to 01.04.2011 was allowed except for Rs. 498/- availed post-01.04.2011.- Railway & Manpower for Railway Track Maintenance: Credit was allowed, referencing the Tribunal's decision in the appellant's own case.- Housekeeping, Gardening, Accommodation, Erection & Commissioning, Insurance, and PF Reimbursement Services: Credit was allowed based on various precedents.- Construction of Compound Wall: Credit was allowed for the period prior to 01.04.2011, except for Rs. 84,587/- availed post-01.04.2011, referencing *M/s Nirma Ltd. Vs. CCE & ST, Vadodara-I*.The Tribunal concluded that the appellant was eligible for credit on input services amounting to Rs. 9,13,541/-, allowing the appeal partly with consequential reliefs.Conclusion:The Tribunal allowed the appeal in part, granting eligibility for CENVAT credit on MS items and most input services, setting aside the lower authorities' orders to the extent of Rs. 37,14,674/- on MS items and Rs. 9,13,541/- on input services. The decision provided significant relief to the appellant, affirming the broader interpretation of eligibility for CENVAT credit on inputs and services used in the manufacturing process.
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