2010 (4) TMI 484

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.... of Rs. 5,29,987/- and Rs. 9,469/- (Education Cess) on Cement and TMT Bars. During the scrutiny of the records, the lower authorities found that the appellant is not eligible to avail Cenvat credit on these items and coming to such a conclusion, they issued a Show Cause Notice dated 20-10-2006 for reversal of the amount taken as credit. The appellant contested the Show Cause Notice on various grounds including the ground of limitation. The adjudicating authority confirmed the demand and also imposed penalty under Rule 15(1) of the Cenvat Credit Rules, 2004. Aggrieved by such an order, the appellant preferred an appeal before the learned Commissioner (Appeals). Revenue was also aggrieved by the order of the adjudicating authority to the exte....

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....nce returns have been filed. 4. The learned JCDR, on the other hand, would submit that the appellant had not indicated in the ST-3 Returns that they have availed Cenvat credit on Cement and TMT bars. It is her submissions that the said TMT Bars and Cement cannot be construed as input at all, as the Capital Goods, which comes into existence, are not excisable goods, as they are attached to Earth. 5. I have carefully considered the submissions made at length by both sides and perused the records. 6. In this case, it is undisputed that the appellant had availed credit of the duty paid on Cement/TMT Bars and Steel tubes, which were received by him in his warehouse for construction of tanks, reinforcement of storage tanks, column founda....

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....tion of the definition of Capital Goods, it clearly indicates that the goods, which are used for providing of output service, are eligible for availing Cenvat credit of the duty paid on such items. It is also pertinent to reproduce the definition of 'input' which reads as under :- "input" means - (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for....