TaxTMI 
TaxTMI 
2015 (10) TMI 1028
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....ion of capital goods being machines/plant and machinery which includes items such as channel/angles/Joist, etc. The assessee disclosed the details in the monthly ER1 returns of having taking credit. It is not in dispute that the invoices of the suppliers on the basis of which credit was taken, the duty had been paid by the said suppliers. The asessee utilised the steel items like HR coils, channels and angles, joist and electrodes on which credit was taken for manufacture of the following capital goods installed within the factory of production, the details of which are as follows: Name of the Input C. Sub-Heading Name of the Final Product C.H. Heading/CCR H. R Plate 7208.11 Material Handling System 8479.19 H.R. Coils 7208.31 Day BIN Kiln Feed Storage Tank under Rule 2(a)(vii) Channels, Angle and Joist 7216.10 Intermediate BIN --do-- Product Storage BIN --do-- G.A. to Crusher & Screen Bids 8416.10, also Rule 2(a)(i) Day BIN Kiln Injection 8419.00 G.A. of Primary Crusher Pollution Control Equipment, under Rule 2(a)(vii) Rule 2(a)(A)(....
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....on of capital goods. Thus, the proposed denial of CENVAT credit of Rs. 19,55,861/- was confirmed along with interest. Further, penalty was imposed under Rule 15 of the CENVAT Credit Rules; 2004 read with Section 11AC of the Central Excise Act, 1944 and further, penalty of equivalent amount was imposed under Rule 25 of the CENVAT Credit Rules, 2002. Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals). 5. The learned Commissioner (Appeals) recorded the following findings: "4. Personal hearing in the case was fixed on 28/11/2008. Shri P.V. Sadavarte, Advocate appeared for the hearing. Shri M. K. Purohit, Inspector, represented the department. 4.1 Shri Sadavarte, submitted that the short point is that as per explanation to rule 2 credit cannot be denied on duty paid inputs used in the manufacture of capital goods which is utilized for manufacture of final product on which duty is payable. He further submits that the department's plea of angles and beams not being eligible for credit is incorrect in so far as the same cannot be denied of duty paid on parts are used in the manufacture of Capital goods which are used for manufacturing....
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....es which support a reaction vessel or used in particular equipment in manufacture of bulk drugs - Entitled to Cenvat credit under Rule 2(b) of Cenvat Credit Ruels, 2002 - Rule 3 of Cenvat Credit Rules, 2004 (Para 5] (4) Having regard to the above judgment, I find that the ratio of the judgment squarely covers the facts of the case under consideration and accordingly I hold that the inputs are used for the manufacture of capital goods and the items which have gone into fabrication of the same are entitled to Cenvat credit. That such Capital goods are embedded to earth is no reason to deny Cenvat Credit on inputs used therein. (5) It is an admitted fact that the inputs were used in the manufacture of Capital goods, its parts and supporting structures within the factory of the manufacturer. As such I hold that the Credit is admissible under Cenvat Credit Rules. Since there is no liability to pay duty the question of payment of any interest and penalty does not arise." 6. The Commissioner (Appeals) was accordingly pleased to allow the appeal setting aside the order of the adjudicating authority. Being aggrieved the Revenue is in appeal before this Tribunal and the ....
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.... of integrated plant/machinery as a whole may or may not be goods. For example, plants for transportation of material (such as handling plants) are actually a system or net-work of machines. The system comes into being upon assembly of its component. In such a situation there is no manufacture of 'goods' as it is only a case of assembly of manufactured goods into a system. This cannot be compared to fabrication where a group of machines themselves may be combined to constitute a new machine which has its own identity/marketability and is dutiable (e.g. a paper making machine assembled at site and fixed to the earth only for the purpose of ensuring vibration free movement. The Revenue has further relied on the ruling in the case of Kisan Sahkari Chinni Mills Ltd. vs. Commissioner of Central Excise, Lucknow 2012 (283) ELT 507 (Tri. Del.) wherein the hon'ble Principal Bench in the case of parts and accessories of machinery for sugar manufacture held that credit should be allowed on items which are parts and accessories of machines used in the factory and also on materials used in fabrication of such items. CENVAT credit is not available on goods which are used for erecting....
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....dit is available to the assessee being a manufacturer as per Explanation (2) to Rule 2 (k) of the CENVAT Credit Rules. In fact the appellant has erred in only taking 50% of the credit of the total credit available to it. It is further contended that the Revenue rejected the Chartered Engineer's certificate without finding any fault with it nor examined the Chartered Engineer's certificate who has certified that for the manufacture of capital goods as in the aforementioned table, the inputs in question had been utilised. Further the adjudicating authority has gone beyond the scope of show cause notice by confirming the proposed demand treating the fabrication in question as immovable property, there being no such allegation in the notice nor a proposal. 8.1. The learned counsel further contends that the impugned order of the learned Commissioner (Appeals) is correct and the same have been passed following the ruling of this Tribunal in the case of Ritesh Trade Fin Ltd. vs. Commissioner of Central Excise, Bolpur, 2005 (191) ELT 1065 and Divi's Laboratries Ltd. vs. The Commissioner of Central Excise, Vishakpatnam 2006 (196) ELT 285 (Tri. Bang). 8.2. The learned couns....