2018 (3) TMI 845 - AT - Central Excise

Appellate Tribunal Overturns Denial of Cenvat Credit on Construction Materials

The appeal was allowed by the Appellate Tribunal CESTAT Hyderabad. The denial of cenvat credit on items like MS plates, MS Flats, MS coils, angles, ... CENVAT credit - xerox copies of invoices - MS plates, MS Flats, MS coils, angles, channels, TMT bars etc. - Held that: - there is no dispute as to the receipt of said items like MS plates, MS Flats, MS coils, angles, channels, TMT bars etc. and put to use for fabrication of storage tanks, boilers, support structures for plant & machinery - the appellant is eligible to avail cenvat credit on MS plates, MS Flats, MS coils, angles, channels, TMT bars etc. CENVAT credit availed on xerox copies of the invoices - Held that: - the matter may be remitted back to the adjudicating authority to reconsider the issue afresh as they will be able to produce the original copies of the invoices - matter on remand. Appeal disposed off. Issues:Denial of cenvat credit on xerox copies of invoices and items like MS plates, MS Flats, MS coils, angles, channels, TMT bars, etc.Analysis:The appeal before the Appellate Tribunal CESTAT Hyderabad was directed against Order-in-Original No: 23/2012 (RS), dated 22.02.2012. The issue at hand concerned the denial of cenvat credit to the appellants on two grounds: firstly, credit was denied on xerox copies of invoices, and secondly, credit was denied on items such as MS plates, MS Flats, MS coils, angles, channels, TMT bars, etc., on the basis that these items did not constitute capital goods. The appellant contended that they had availed cenvat credit on the fabrication of storage tanks, boilers, and support structures for plant & machinery. Reference was made to legal precedents set by the Hon'ble High Court of Karnataka and Madras in cases involving similar issues. The appellant argued that they were now in a position to produce the original invoices, which were not submitted during the adjudication process, and requested a reconsideration of the denial of cenvat credit on xerox copies of the invoices.Regarding the cenvat credit availed on various inputs like MS plates, MS Flats, MS coils, angles, channels, TMT bars, etc., the Tribunal noted that the law was settled by decisions of the Hon'ble High Courts of Madras and Karnataka in specific cases. It was established that the items in question were received and utilized for the fabrication of storage tanks, boilers, and support structures for plant & machinery. Following the legal precedents, the Tribunal concluded that the appellant was eligible to avail cenvat credit on these items, thereby allowing the appeal and setting aside the impugned order.In the matter of cenvat credit availed on xerox copies of the invoices, the Tribunal agreed with the appellant's submission that the issue should be remitted back to the adjudicating authority for reconsideration. The appellant's ability to produce the original invoices was considered, and the Tribunal directed the adjudicating authority to reexamine the eligibility of cenvat credit subject to the production of original documents. Emphasis was placed on following the principles of natural justice in reaching a conclusion. The appeal was disposed of accordingly, with the decisions outlined and pronounced in the open court.