2010 (7) TMI 388

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er and cement. They have been availing Cenvat credit on various items. The present dispute relates to denial of credit of Rs. 3,61,947/- on the steel plates, angles and channels, which were used for the repairs, upkeep and maintenance of machines, machinery equipment and structural, and denial of credit of Rs. 35,227/- on clean flo and chemicals which were used in the cooling tower attachment to the DG sets for treatment of water and for prevention of formation of algae. Penalty of equal amount was imposed by the original authority which stands reduced to Rs. 50,000/- by the Commissioner (Appeals). 4.1 Learned Advocate for the appellants, drawing attention to the relevant portion of the show cause notice, submits that in respect of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onsidered the following questions : (a)     Whether the term "capital goods" can include plant, structures embedded to earth? (b)     Whether the goods like angles, joists, beam, channels, bars, flats which go into fabrication of such structures can be treated as 'inputs' in relation to their final products as inputs for capital goods, or none of the above? (c)     Whether the credit can be allowed in respect of goods like angles, joists, beam, channels, bars, flats which go into fabrication of such structures and plant? Following are the salient features of the decision of the Larger Bench :- (a)     It disapproved the decision of the Tribunal in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sp;    It was also held that the foundation and supporting structures are neither inputs nor components, spares and accessories of machinery, nor have they been listed for such inclusion in the definition of capital goods. With the above findings and observations, the question referred to Larger Bench were answered as follows : "49.In the light of the foregoing findings, we answer the questions referred to the Larger Bench as follows :- (a)     The terms "capital goods" has been defined in the Cenvat Credit Rules, which in turn have been framed under the rule making powers conferred under Section 37(2) of the Act. The said Section refers to credit of duty paid on goods used in, or in relation to t....