TaxTMI 
TaxTMI 
2016 (5) TMI 1119
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.... "12. Respectfully abiding by the decision of the Larger Bench of the Honble CESTAT mentioned above and the facts and circumstances mentioned above, I uphold the Order-in-Original No. 19/2009/DEM/Dn. II dated 30.6.2009 passed by the Dy. Commissioner, Customs & Central Excise, Division-II, Nagpur with respect to the confirmation of the demand as well as the interest thereon. However, I set aside the penalty imposed on the appellants under Rule 15 of the Cenvat Credit Rules, 2004. The appeal is disposed off accordingly." 2. The issue involved in the present case is whether the appellant is entitle for the credit in respect of goods namely M.S. Angles, M.S. Flat, CTD Bar, M.S. Sheet/Plate, falling under chapter heading 72 of the C....
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....l goods but all these capital goods are embedded to earth therefore it is immovable for this reason also credit is not admissible. In this regard he submits that Cooling bed is mounted on the foundation with the help of nut and bolt and it can be conveniently dismantled/removed as and when required, therefore the same is not immovable. Similarly, Crane Gantry is also fabricated and installed with the help of nut and bolt and can be removed or dismantled. The Pollution control equipment, furnace, rail are also movable Capital goods. He submits that all these goods are clearly covered under the definition of capital goods as machineries, therefore, material used in the fabrication of the said items is input and hence credit should be allowed.....
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....gment of Hon'ble Allahabad High Court incase of Daya Sugar Vs. Commissioner of Central Excise, Meerut-I[2015(316) ELT 394(All)] 5. I have carefully considered the submissions made by both sides and perused the record. 6. I find from the fact that the goods except CTD bar used in fabrication of capital goods i.e. Cooling bed, Crane Gantry, Pollution Control equipment, furnace, Rail etc have not been disputed any of the lower authority. However, credit was denied only on the ground that these capital goods are embedded to the earth and immovable. It is also found by the lower authority that the steel material on which credit was availed are not admissible input, in view of the judgment of Vandana Global. I find that in case of Vandana G....
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....tally movable. Materials used are MS Sheet, MS Angles etc. Furnace- The wall of the furnace which is made of refractory material is covered from the outside by M.S. Plate which is essential to keep the wall of the furnace intact and to protect it from the environment and also to stop the inside heat of the furnace to come out and also to protect the persons working nearby. The MS plat is only a cover it is integral part of the furnace at the same time it is not embedded in the earth. It is removable. Material used are MS Angle, MS Beam, MS Channels, MS Plates. Rail- The rails are on the surface and over the rails the mill stands are attached. It is a movable locking arrangement like male female. Materail used are MS Rail. From the ....
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.... goods for manufacture of final products, and hence the same would be eligible for Cenvat credit. Since, without Gantry, the EOT crane cannot function the same has to be treated as part of the EOT crane and, hence, in my view, the steel items used for production of goods for manufacture of final products would be eligible for Cenvat credit. Similarly, the steel items used for fabrication of conveyor system for handling of material would also be eligible for Cenvat credit as input. The impugned order is, therefore, not sustainable. The same is set aside. The appeal is allowed. Mastech Technologies Pvt Ltd(supra) 7. As regards jigs, the same is specifically covered by the definition of capital goods as given in Rule 2(a) of Cenvat....
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....e cooling bed has to be permanently fixed to the earth. Looked at from this angle, the steel items in question, which admittedly have been used in fabrication of the cooling bed, have to be treated as input having been used in fabrication of the components of rolling mills, which are covered by the definition of capital goods and, therefore, the same would be eligible for Cenvat credit, as the definition of input in Rule 2(k) also covers the inputs used for fabrication of capital goods for use in the factory. I find that the Honble Chhattisgarh High Court in the case of Union of India v. Associated Cement Company Ltd. has allowed the Cenvat credit in respect of the wear plate, HRSS plate, M.S. Plate, angles and channels, which were used fo....