TaxTMI 
TaxTMI 
TaxTMI 
2013 (5) TMI 241
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.... the period from April, 2007 to Jan 2008 took cenvat credit of Rs.7,67,689/- in respect of various steel items viz. H.R. Steel Plates, flats, TMT bars, angels, channels, steel structure, steel tubes, etc. Similarly during the period from Feb., 2008 to March, 2009, another cenvat credit of Rs.87,789/- was availed in respect of above mentioned items. In both the cases, the cenvat credit was availed as capital goods cenvat credit by treating the H.P. Plates, Angles, Channels as items of capital goods. According to the appellant, these items were used mainly for fabrication of storage tanks, and also for fabrication of gantry rails for EOT cranes. The storage tanks are the tanks embedded to earth and are used for processing of steel polls for v....
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....envat Credit Rules, that the tanks mentioned in these rules need not be as movable tanks and can be the tanks embedded to earth also, that Hon'ble Karnataka High Court in the cases of CCE, Bangalore-II Vs. SLR -2012 (280)ELT 176 and Commissioner of Central Excise, Mysore Vs. ICL Sugars Ltd. reported in 2011 (271) ELT 360 (Kar.) and Bombay Bench of the Tribunal in the LSR Speciality Oils Pvt. Ltd. has held that the M.S. Angles, Sheets and other steels items used in fabrication of the storage tanks embedded to earth would be eligible for cenvat credit as inputs, as storage tanks, even if embedded to earth and immovable, have to be treated as capital goods, that the ratio of these judgements of the Hon'ble Karnataka and the Coordinate Bench of....
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....s been used for fabrication of gantry rails and jigs. 7. As regards jigs, the same is specifically covered by the definition of capital goods as given in Rule 2(a) of Cenvat Credit Rules and, therefore, the steel items used for fabrication of jigs would be eligible for cenvat credit as inputs. 8. As regards, gantry rails, the same has to be treated as part of the EOT Crane system, which covered by Chapter 84 and hence is capital goods. The Tribunal in the case of CCE, Ambuja Cement Eastern Ltd. (supra) cited by the ld. Counsel for the appellant has held that M.S. Rails used for conveyor systems are its accessories, and hence entitled to cenvat credit as capital goods. Therefore, steel items used for fabrication of gantry rails on which EO....
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.... capital goods, it would be seen that the definition starts with the words capital goods means the following goods viz- Thus the items covered in the definition of capital goods are certain goods specified in the definition. In other words, the items specified in the definition of capital goods, as given in Rule 2(a) have to be goods. It is the settled law that the goods have to be something which are movable and something fixed and embedded to earth cannot be called goods. Therefore, the tanks which are mentioned in Rule 2 (a) have to be movable tanks and this terms would not include the tanks embedded to earth or underground tanks, which are immovable property. Though the ld. Counsel for the appellant has cited the judgements of Hon'ble K....