2014 (7) TMI 228

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....2012, though not listed today is taken up for hearing along with the appeal with the consent of both sides. 2. The appellant is engaged in the manufacture of 'Thermal Baffle' and 'Inner Vessel' in the premises of Nuclear Power Station, Kalpakkam as a job worker, which was awarded to them by M/s. Bharat Heavy Electrical Ltd., Tiruchirapalli (BHEL, in short). The issue involved in this case is denial of Cenvat credit of Rs. 82,33,119/- on the 'Base Frame', 'Beams', Pipes etc., and the credit of Rs. 15,37,031/- was availed on the basis of supplementary invoices issued by BHEL. 3. The learned Counsel for the appellant submits that BHEL supplied these items under the cover of Central Excise invoice classifying under Chapter 8419 8910 of th....

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.... The learned Authorised Representative for the Revenue submits that as revealed from the Show Cause Notice that the 'Base Frame' and 'Platforms' are either used as scrap or used for some other purposes by 'BHAVANI', which is the site of the project. She also submits that the Commissioner has rightly denied the credit in these items as these items are not integral part of the 'capital goods'. 5. After hearing both sides, we find that it is well settled that the classification of the goods cannot be changed at the hands of the recipients of 'inputs' or 'capital goods'. Hence, we are unable to accept the observation of the adjudicating authority that goods appear to be classifiable under Chapter 72 of the Tariff. We find that BHEL had given....

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.... 6) That M/s. Ensys Technologies India Pvt. Ltd., had paid Central Excise duty on its final products viz. Thermal Baffle and Inner. Vessel by utilizing the Cenvat credit of duty paid on the materials supplied by us [BHEL, Trichy]. 7) That the items sent by us to M/s. Ensys Technologies India Pvt. Ltd., were used in the manufacture of Thermal Baffle and Inner Vessel , but they become integral part of the said final products, without which these would not lion at all. The primary functions of these materials (the materials supplied by Trichy to M/s. Ensys Technologies India Pvt. Ltd., and forming part of the nal Baffle and Inner Vessel) are as under:- Thermal baffle and Inner Vessel are very large sized vessels to be formed as an assemb....