2007 (7) TMI 67

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....r, dextrose monohydrate and sorbitol, which were excisable goods. It was availing Cenvat Credit facility on the inputs as well as on the capital goods under Rule 3 of the Cenvat Credit Rules, 2002. 3. The Revenue noticed from the ER-1 return for the period from June, 2003 to October, 2003, that the assessee had wrongly taken Cenvat Credit in respect of Cement, CTD Bar, Channel, Glass Fibre Fabrics, Lappoxi Hardner and Resin. On being asked, the assessee responded by saying that, these inputs were used in erection and installation of pollution control equipment 9ET plant. According to the assessee, these items were used in erection/installation of pollution control equipment and storage tanks, which were used for storing and manufacturing....

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....ufacturer". It was held that, the inputs, such as, Cement, CTD Bars, Channels etc. were utilized for Effluent Treatment Plant including construction of Storage Tank which was nothing but a part of the Pollution Control Equipment. He, therefore, set aside the order of the adjudicating authority. 6. It has come on record that, for the manufacture of the final product, the assessee was using Maize, Juar, Tapioca Starch, Caustic Sode Acid and Enzyme. As regards the items, such as, cement, CTD Bars etc., for which Cenvat Credit was taken in respect of the period in question, it was admitted by the authorized signatory of the respondent/assessee that, these were not used for the manufacture of their product in the factory. According to him, th....

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....t thereof, there has come about a major shift in the legislative intent, because the word 'plant' was capable of a very wide meaning. The assessee in the present case has mis-read Rule 2(b)(ii) which speaks of 'Pollution Control Equipment' as Capital Goods to be 'Plant'. It is obvious that, Pollution Control Equipment and the "Storage Tank" contemplated in the definition of "Capital Goods" are required to be "Goods", which are movable property. It is only the Pollution Control Equipment and Storage Tanks, which are movable property that can be described as "goods" for the purpose of the definition of 'Capital Goods'. 7. The Hon'ble Supreme Court in the case of Quality Steel Tubes (P) Ltd. v. Collector of Central Excise, U.P. (supra), lai....