2016 (3) TMI 155

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....goods as defined in Rule 2(a) (A) of Cenvat Credit Rules, 2004 relying on the Ruling in the case of Vandana Global Vs. CCE 2010-TIOL-624-CESTAT-DEL-LB. 2. The facts are that the appellant is engaged in manufacture of Iron and Steel products like Billets, Blooms, Bars & Rods, Wire etc. falling under Chapter 72, 73 and 84 of the CETA. The appellant is engaged in both, alloy and non-alloy steel. The appellant expanded the capacity by installing automatic wire rod mill during the period 2006-007. The mill has number of auxiliary and ancillary system. In the course of modernization of wire rod mill falling under Heading 84.55 of Central Excise Tariff, the following equipments are also installed as finishing facility. They are also covered in ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dit on AC Sheets and Aluminum Corrugated Sheet. The assessee reversed Cenvat Credit on 14.7.2008 of Rs. 3,37,752/- and further paid the amount of interest of Rs. 76,218/- vide challans totaling Rs. 4,13,970/- during July-August 2008. Thereafter on being so advised, in view of the ruling of this Tribunal in the case of Bhushan Steel Strips Vs. CCE being Final order dt. 14.12.2007 reported at 2008 (223) ELT 517 wherein it was held that in case of credit availed, the material being sheets etc. under the fact that they were essential for better quality of output product/goods in the manufacture from climatic conditions, including atmospheric gases and dust particles etc. which create oxides on the surface of the sheets manufactured and the same....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....itted by the appellant that these goods were used for providing protective cover only and as such they must be part of structure created in the factory which is attached to earth, accordingly, relying on the Larger Bench decision of this Tribunal in the case of Vandana Global Ltd. (supra), wherein the ruling of a Bhushan Steel Strips Ltd. was overruled. Being aggrieved the appellant is before this Tribunal. 5. Ld. Counsel for the appellant Shri P.V. Patankar submit that it is not in dispute that the sheets in question have been utilized for covering the machinery and/or machines which is necessary for smooth running and manufacture of quality output, as the same provides protection from dust etc. as well maintenance of right temperature ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....by SMC Bench of this Tribunal in the case of Commissioner of Central Excise, Nagpur Vs. Lloyds Metals & Engg. Ltd. 2014 (309) E.L.T. 533 (Tri.-Mumbai), have also held the Cenvat Credit eligible for M.S. Bar, beams etc. for setting up kiln, cooler and chimney in factory. 6. Ld. DR relies on the impugned order and further relies on the ruling in the case of Commr. of Cus. & C. Ex., Vs. Rathi Steel & Power Ltd. 2015 (321) E.L.T. 200 (All.) wherein the Honble High Court of Allahabad considering the fact that the assessee have availed Cenvat Credit on items like Shapes & Section, M.S. Plate, H.R. Plate, M.S. Channel, Angles, Roughly Shaped, Forged Rolls, Plaints & Primer etc. the same were used in construction of factory shed, building or la....