TaxTMI 
TaxTMI 
2016 (2) TMI 208
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....es, the respondent not entitled to take Cenvat credit. In support to his contention he relied on the decision in the case of Nelvetha Cast Steels (P) Ltd. v. CCE, Madhurai - 2013 (294) E.L.T. 127 (Tri.-Chennai) to say that the support will not automatically become the part of crane. 3. None appeared on behalf of the respondent. 4. Matter is taken up for consideration and I have perused the impugned order wherein ld. Commissioner (A) has examined the issue on the basis of certificate issued by the Chartered Engineer saying that these rails were used for EOT cranes and they are essential components of EOT cranes. The ld. Commissioner has observed as under : 5.2 Before discussing on the issue, I find that, the issues were ad....
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....of the appellant after manufacture of finished product i.e. Rolled products (Angles, Channels, Beams etc.) reaches to the Cooling Bed for cooling. This Cooling Bed is mainly made from Rails. It is a place where finished goods are kept for cooling. It situated at the end of power Hot saw which cuts extra part of the Rolled products. It holds the hot finished goods till it gets to cool down. Hence, it is essential part of the Rolling Mill. 579 MT of Rails has been used for cooling bed & Chattal. The Rolling Mill is classified under chapter heading No. 84. The same is duly supported with photo graphs and chartered Engineer certificate. Chattal : Chattal is attached to Cooling Bed of Rolling Mill. After cool down of Rolled products i.e. finis....
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....ective effect. Thus, in terms of Hon'ble Tribunal's aforesaid judgment as well as Board's instruction supra, Cenvat credit on Cement and Steel items used for laying foundation and for building supporting structures is not allowable. Further para 4 of the CBEC instruction No. 267/11/2010-CX, dated 8-7-2010 stipulate that, the credit on inputs used in the manufacture of capital goods, which are further used in the factory of the manufacture is also available, except for items like Cement, angles, channels, CTD or TMT bars and other items used for construction of factory shed, building or laying foundation or making of structures for support of capital goods. From the above it is obvious that, if an assessee manufactures items i.e. Capital goo....
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....g Mill Unit and thus fall within the purview of Capital goods as defined under Rule 2(a) of Cenvat Credit Rules, 2004. 5.4 In the Appellant's case they have manufactured parts EOT Crane & Cooling Bed by impugned structural items. I also find that, the impugned structural items i.e. Rails are not supporting structures of Plant & Machinery or for laying foundation and hence the findings of the adjudicating authority that, these are not goods being embedded to the earth are in the nature of immovable goods and are not goods or excisable goods in terms of CBEC Circular No. 58/1/2002-CX, dated 15-1-2002 is not proper. From the Cenvat credit details I find that, they have availed Cenvat credit on account of structural steel items used for ....
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.... Held accordingly. 5.5(ii) Further I got support from Hon'ble High Court of Chhattisgarh in the case of Union of India v. ACC Ltd. reported in 2011 (267) E.L.T. 55 (Chhattisgarh) held that, Cenvat/Modvat - Capital goods - Credit on wear plate, HRSS plate, MS plate, angles and channels - allowed credit on steel plates and MS channels used in fabrication of chimney for diesel generating set - Credit allowed for connecting/fitting fans, casing and ducting in kilns for manufacture of intermediate product 'clinker' - Impugned Tribunal order allowing credit on said items as capital goods sustainable - Rule 2(a) of Cenvat Credit Rules, 2004. 5.6 I also find support from the Boards Circular and which is as below : F. No. 267/11/2010-....
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....has retrospective effect. 2. Attention is also drawn to the Tribunal's judgment in the case of Vikram Cement v. CCE, Indore [2009 (242) E.L.T. 545 (Tri.-Del.)], where the Tribunal held that credit on welding electrodes used for repair and maintenance, is not available as input. It may also be noted that in the case of Vikram Cements v. CCE, Indore [2005 (187) E.L.T. 145 (S.C.)], it has been conclusively held by the Apex Court that the definition of capital goods is not inclusive and only the items covered under the definition and used in the factory of the manufacturer can be treated as capital goods. 3. It thus follows from the above judgments that credit on capital goods is available only on items, which are excisable goods ....