TaxTMI 
TaxTMI 
2013 (12) TMI 759
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....ning of 210 KPTA Project within the factory premises of the respondent. A show cause notice dated 24.6.2008 was issued to the respondent invoking Rule 3(4) of Cenvat Credit Rules, 2004 for recovery of the above mentioned credit on the ground that issue of the cenvat credit availed paint to the contractors amounts to its removal as such and hence, the respondent should have reversed the cenvat credit availed input in respect of the same. This show cause notice was adjudicated by the jurisdictional Dy. Commissioner vide order-in-original dated 20.01.2009 by which the Dy. Commissioner observing that there was no clearance of the paint outside the factory premises and the paint is specifically covered by the definition of input as given in Rule....
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....me would not be eligible for cenvat credit in view of the Larger Bench of the Tribunal in the case of Vandana Global Ltd. (supra). 4. Shri Hemant Bajaj, ld. Counsel for the respondent, pleaded that the ground adopted in the Revenue's appeal is totally different from the grounds of appeal in the show cause notice, that the Revenue cannot challenge the Commissioner (Appeals)'s order on the ground which was not there in the show cause notice, that in any case, since the paint had been used on the machinery and the paint is specifically covered by the definition of input as given in Rule 2 (k) of the Cenvat Credit Rules, the cenvat credit in respect of the same would be admissible, as there is no use of paint other than its application on the ....
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....ch is fixed to the earth, would not be eligible for cenvat credit. This plea has to be rejected not only on the ground that the department cannot file appeal on a new ground which was not there at all in the show cause notice, but the same has also to be rejected as an obsurd plea. The ratio of the judgment in the case of Vandana Global Ltd. (supra) applies to a case where steel, cements etc. have been used for erecting fixed to earth structures like supporting structures or foundation for machinery, factory sheds, etc. But this judgment cannot be applied to deny Cenvat Credit in respect of paint, which is specifically covered by the definition of input and its only use is its application on machinery to protect the same. The judgment of La....