TaxTMI 
TaxTMI 
2009 (11) TMI 232
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....s re-framed as follows: "(i) Whether under the facts and in the circumstances of the case, the Tribunal was right in ignoring the definition of "capital goods" set out in Rule 57AA(a) of the Central Excise Rules, 1944 and Rule 2(b) of the Cenvat Credit Rules, 2001, wherein "storage tanks" are specifically stated to be capital goods? (ii) Whether under the facts and in the circumstances of the case, the Tribunal was right in ignoring the definition of "inputs" set out in the 57AA(d) of the Central Excise Rules, 1944 and Rule 2(f) of the Cenvat Credit Rules, 2001, as per which inputs include goods used in the manufacture of capital goods, which are further used in the factory of the manufacturer? (iii) Whether under....
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....n respect of the very same issue i.e., with regard to extending the Cenvat/Modvat credit facility in respect of the storage tank in the case of KCP Ltd. v. Commissioner of Central Excise, Guntur decided on 13-10-2008 [2009 (237) E.L.T. 500 (Tribunal)]. The very same Tribunal has granted the relief and hence the present order of the Tribunal suffers from infirmity and there is no justification for the appellant being singled out. He would also submit that in the explanation to Rule 57AA it is clarified that the capital goods do not include any equipment or appliance used in the office and it has to be held that all other goods would fall within the category of capital goods and particularly with reference to the storage tank. 5. Per....
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....ly Rule 57AA and the same reads as follows: "Rule 57AA: Definitions:- For the purpose of this Section:- (a) "capital goods" means- (i)all goods falling under Chapter 82, Chapter 84, Chapter…., Chapter 90, heading No. 68.02 and sub-heading No. 68.01 of the First Schedule to the Central Excise Tariff Act, 1985: (ii)Components, spares and accessories of the goods specified ...above; (iii)Moulds and dies; (iv)refractories and refractory materials; (v)tubes and pipes and fittings thereof, used in the factory and (vi)pollution control equipment; (vii)storage tank used in the factory of the manufacturer of the final products. Explanation: - For removal of doubts, it is hereby clarified that "capital goods" do not....
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....ch the Cenvat/Modvat credit has been denied would definitely be applicable in the instant case. The Tribunal in identical circumstances having noticed the said amendment and having extended the benefit in respect of storage tank for final product under the Cenvat Credit Rules which is also in pari materia with the Central Excise Rules, 1944, we are of the opinion that the Tribunal as well as the First Appellate Authority were not justified in rejecting the claim of the assessee for availing the Modvat credit. 8. In so far as the judgments relied upon by learned counsel for respondent-revenue it is seen that in Damodar Ropeways, Pragati Paper Mills Ltd. and Thungabhadra Steels cases were all prior to the insertion of "storage tanks"....