TaxTMI 
TaxTMI 
TaxTMI 
2014 (7) TMI 233
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....red by Chapter 39 of Central Excise Tariff, Act 1985. During period from July'07 to March'12 the appellant had taken Cenvat Credit of Rs. 3,67,72,79,616/- in respect of various items of capital goods received by them for erection, installation and commissioning of Nephtha Cracker Plant. A team of officers from the Jurisdictional Central Excise Commissionerate, Rohtak, visited the appellant's premises to ascertain the correctness of the Cenvat Credit taken. The Officers found that the appellant had entered into composite lump sum turnkey contracts for various EPCC (Engineering, Procurement, Construction and Commissioning Contracts) projects with different contractors such as M/s. Larsen & Toubro Ltd., M/s. Toyo Engineering Corpor....
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....any has committed fraud and deliberately suppressed the information from the Department with intent to evade the payment of duty by taking wrong Cenvat Credit. Since it had been found that the appellant during the period from Oct.'11 to March'12 had wrongly availed and utilized the Cenvat Credit of Rs. 58,13,624/- in respect of Cenvat Capital Goods to which they were not eligible, another Show Cause Notice dt. 02.11.12 was issued to them for recovery of the above amount of Cenvat Credit along with interest thereon and also for imposition of penalty. Both the Show Cause Notices were adjudicated by the Commissioner, Central Excise, Rohtak vide order-in-original No.23-24/CE/Commr./DM/RTK/2012, dated 31.12.12 by Commissioner Central Exc....
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.... taken in respect of steel items, cement etc. used for supporting structures, of machinery, that for availment of capital goods Cenvat Credit, what is required is that the goods must be covered by the definition of capital goods as given in Rule 2(a) of Cenvat Credit Rules, 2004 i.e. goods fall in the Chapters mentioned in this Rule or are those goods which are mentioned in Rule 2(a) and that same are used in the factory, that how the goods covered by the definition of capital goods, as given in Rule 2(a), are used in the factory is not relevant, that whether the goods after being installed in the factory have become fixed to the earth is not relevant at all for capital goods Cenvat Credit, that ownership of the goods at the time of receipt....
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....lful suppression of the facts and fraud with intent to evade the payment of duty, that the impugned order is not sustainable at all, that the appellant company have strong prima facie case in their favour and hence the requirement of pre-deposit of Cenvat Credit demand, interest thereon and penalty may be waived for hearing of the appeal and the recovery thereof may be stayed till the disposal of the appeal. 4. Sh. Amresh Jain, learned DR, vehemently opposing the stay application, pleaded that notwithstanding the fact that the goods procured by the appellant's vendors/contractors and brought into the refinery were machinery and equipment, the appellant would not be eligible for Cenvat Credit, as what the appellant had received in terms....
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....een taken in respect of various items of the machinery. It is not disputed that the goods in respect of which Cenvat Credit, in question, has been taken are covered by the Chapter 84, 85 & 90 of the Central Excise Tariff or are the item specifically mentioned in Rule 2(a) and accordingly are covered by the definition of the 'capital goods' as given in Rule 2(a) of Cenvat Credit Rules. The Department seeks to deny the Cenvat Credit on the two grounds, namely ;- (a) at the time of receipt of capital goods in the refinery where the same had been installed for setting up Nephtha Cracker Plant, the appellant were not owner of the goods, as the same had been brought by their contractor for setting up the plant; and &n....
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....in the factory, the capital goods put together become a plant which is a fixed to earth structure, the Cenvat Credit cannot be denied on the basis that the plant which is fixed to earth structure, is not excisable. This preposition of the Department is, in fact absurd, as there is no such condition in Rule 2(a) for capital goods. For capital goods Cenvat Credit, the items must be among those mentioned in this Rule and should have been used in the factory of the manufacturer and how the items are not used relevant. The words used in Rule 2(a) are "used in the factory of manufacturer of the final product" not "used in the manufacture of final product". Therefore, once any item received in the factory is "capital goods" in terms of Rule 2(a) o....