TaxTMI 
TaxTMI 
2009 (6) TMI 498
X X X X Extracts X X X X
X X X X Extracts X X X X
....at credit of duty paid on the items like Steel and cement. It was the allegation of the Revenue in the Show Cause Notice that these items are used in the construction of civil structures and factory buildings and are not capital goods. Coming to such a conclusion, Show Cause Notices were issued for the period July, 2004 to December, 2004 seeking to deny the Cenvat credit availed by the appellant on these items. The appellant contested the Show Cause Notice before the adjudicating authority on various grounds, mainly on the ground that the items like steel and cement were used by the appellant in the construction of Storage Tanks wherein intermediate products or raw materials/items used for the manufacture of the final products were stored. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... authority has come to a factual finding as regards the usage of these items. He would submit that Revenue has not adduced any evidence contrary to the said evidence before the learned Commissioner (Appeals). It is his submission that the impugned inputs are used in the manufacture of capital goods that are used within the factory of the manufacturer. He would submit that they are placing reliance upon the decision of the Supreme Court in the case of CCE, Coimbatore v. Jawahar Mills Ltd. - 2001 (132) E.L.T. 3 (S.C.) for the proposition that the language used in the erstwhile Rule 57Q was very liberal and the definition of capital goods in this case need not be used for producing the final product or used in the process of any goods for the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or steel, cement, TMT bars and other items such as MS Plates, channel plates, MS Angles and Joists. The learned Adjudicating Authority, while dropping the proceedings issued by the authorities, came to the following findings: "8.The assessee contested the proposal for recovery of credit by claiming that Cement and Steel in question are not used in the construction of building but used only for construction of Storage tanks, (Viz. storage tanks for storing Iron Ore and Coke and the storage tanks for water to be supplied to Blast Furnace Complex, Blast Furnace Gas Storage Tank) and Pollution Control equipments etc., which are specified as Capital goods in definition given in Rules of Cenvat Credit Rules, 2002/2004. 9. I have considered ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ch circumstances, the said items namely Cement and Steel products are to be treated as inputs used in the manufacture of the capital goods, which are in turn used within the factory of manufacturer in terms of explanation 2 to Rule 2 of Cenvat Credit Rules, 2002/2004. Thus the assessee are entitled to the benefit of Cenvat Credit on the said items as inputs and not as Capital goods. Hence, the availment of the credit on the quantum of Cement and Steel products used in the manufacture of storage tanks and pollution control equipments is proper and legal and the question of recovery of the credit availed by them does not arise. As I have held that the assessee are eligible to the benefit of Cenvat Credit on the said inputs there is no warrant....