TaxTMI 
TaxTMI 
2011 (4) TMI 1065
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....the Respondent. [Judgment per : N. Kumar, J.]. - The revenue has preferred this appeal by challenging the order passed by the Tribunal which has upheld the order of the appellate authority by observing that the inputs used in the manufacture of storage tanks which are immoveable property is also admissible for Modvat credit. 2. The assessee is engaged in the manufacture of sugar. it ....
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....ttom plates/roof plates used for constructing non-excisable final molasses storage tank and shell of final molasses storage tank, under Rule 57U of the Central Excise Rules, 1944. The reasoning given for disallowing the Cenvat credit to these storage tanks was that the molasses tank is constructed on the floor with a concrete foundation and the shell of the final molasses storage tank will be plac....
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....said tanks were capital goods and credit could not be denied in terms of Rule 57D(2) of the Central Excise Rules and therefore they dismissed the appeal. Aggrieved by the same, the revenue is before this Court. 4. The learned counsel appearing for the revenue assailing the impugned order contended that as per the definition of Rule 57Q there was no storage tank included in the definition o....
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....d in the definition of capital goods. The storage tank has been held to be a component to the main machinery namely, boiler and the benefit is extended to the inputs used in the construction of the storage tank though it is also embedded to the land. On the same reasoning the assessing authority ought to have extended the benefit to the syrup and molasses storage tank also, as they are bye-product....