2014 (4) TMI 140

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....ct evaporating plant to substantially reduce the quantity of affluent in the distillery. The department was of the view that the steel items, in question, are not eligible for Cenvat credit, issued a show cause notice dated 27/11/09 for denying the above-mentioned Cenvat credit, its recovery alongwith interest and imposition of penalty on the appellant. The allegation in the show cause notice was that the items, in question, have been used for repair and maintenance of the existing plant and machinery. 1.1 The show cause notice was adjudicated by the Assistant Commissioner vide order-in-original dated 12/3/10 by which he confirmed the above-mentioned Cenvat credit demand alongwith interest and imposed penalty of equal amount on the appel....

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....he evaporation plant is part of the pollution control equipment, which is specifically covered by the definition of capital goods as given in Rule 2 (a), that just because after fabrication, the pollution control equipment is installed and after installation becomes fixed to the earth, the Cenvat credit in respect of the inputs used in the fabrication of such pollution control equipment cannot be denied, that the Apex Court in the case of CCE, Jaipur vs. Rajasthan Spinning & Weaving Mills Ltd. reported in 2010 (255) E.L.T. 481 (S.C.) has held that the steel plates and MS Channels used in fabrication of chimney for the diesel generating set is an integral part of the pollution control equipment, that same view has been taken by the Hon'ble K....