TaxTMI 
TaxTMI 
2016 (6) TMI 466
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....sue involved in these appeals is whether the appellant is entitled to Cenvat credit on the items, like, Hot Strip Mill Plates, Flat, STRL, Plate, Mill Plates, M.S.Channel, Angles, Joists, Chequered Plates and Beam and Joist etc. falling under Chapter 72 of Central Excise Tariff Act, 1985, which were utilized in fabrication of Bio-Gas Plant-a Pollution Control Equipment. 3. Vide the impugned order in appeal dated 18/11/2010, the ld. Commissioner (Appeals) has observed that the adjudicating authority have held that Bio-gas plant is not any excisable goods being immovable and unmarketable, hence it cannot be considered as capital goods. Further, he held that the impugned goods are not accessories in terms of Rule 2 (a) (A)(iii) of Cenvat Cr....
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....he facts that in the show-cause notice, it was proposed to disallow the cenvat credit on the ground that the structural steel items have been used in fabrication of bio-gas plant, which is further used in generation of bio-gas to be captively consumed as a fuel for generation of electricity, an exempted product, hence, cenvat credit is not available. Whereas going beyond the scope of show-cause notice, in the impugned order, the cenvat credit has been disallowed on the ground that the bio-gas plant is immovable equipment fabricated. The ld. Counsel further points out that the ld.Commissioner (Appeals) has erred in disallowing the cenvat credit as admittedly the goods in question have been used in fabrication of Pollution Control Equipment, ....
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....ble by being fixed to earth. The ld. Counsel further relies on the ruling of the Honourable Allahabad High Court in the case of Majhola Distillery and Chemical Works Vs. Commr. of Trade Tax, wherein the Honourable High Court observed that on perusal of the contract, it reveals that it was for establishment of affluent treatment plant on turnkey basis under which the contractor was to design, fabricate, commission and erect the effluent treatment plant at site. One of the item, which was to be commissioned was bio-gas plant. Thus, it was not the bio-gas plant, as an independent unit, to be supplied in the execution of the works contract, but by using the various items, bio-gas plant was to be fabricated, commissioned and erected at site. The....
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....iable final products. 5. The ld. A.R. for the Revenue relies on the impugned order. He further states that admittedly, the bio-gas plant fabricated is immovable and further not marketable and accordingly no interference in the impugned order is required. 6. Having considered the rival contentions, I hold that under the admitted fact that the appellant have fabricated biogas plant with the inputs in question being capital goods. I hold that as bio-gas plant is a pollution control equipment defined in rule 2 (a)(A)(ii) of Cenvat Credit Rules, 2004, the appellant have rightly taken credit, being entitled to the same. Further, some portion of the capital goods about 15% used in the existing machinery, like repair and fabrication of Sugar ....