TaxTMI 
TaxTMI 
2016 (6) TMI 819
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....sp; During the scrutiny of ER-1 returns it was found that appellants availed CENVAT credit of duty paid on MS Plates, MS Chequered Plates, MS Angles, MS Channels under the category of capital goods during the period November, 2008 to June, 2009 (Appeal No. E/1805/2011) for an amount of Rs. 46,51,208/-. The Appeal No. E/1596/2012 pertains to credit availed during the period April, 2010 for an amount of Rs. 1,64,119/-. 3. It is the case of department that appellant availed irregular credit on MS Plates, MS Chequered Plates, MS Angles, MS Channels, MS Tor Steel Round etc., which were used by appellant in construction of new plant. The credit availed for period November, 2008 to June, 2009 is of Rs. 46,51,208/-. The a....
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....ng equipment 4. The appellant was issued separate show cause notices (dated 19.11.2009 and 02.05.2011) raising the allegation of irregular availment of credit on subject items. After due process of law, the original authority observed that appellant is not eligible for credit as the subject items are used for construction of building. The original authority confirmed the demands along with interest and imposed penalties. Being aggrieved, the appellant filed appeals before the Commissioner (Appeals) and vide order impugned herein, the Commissioner (Appeals) upheld the order passed by original authority. The appellant is thus before the Tribunal. 5. I have heard both sides. 6. The learned cou....
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.... that there is a separate entry for components, spares and accessories and no reference has been made about their classification. As such, scope of this entry is not restricted only to the components, spares and accessories falling under Chapter 82, 84, 85 or 90 but covers all components, spares and accessories of the specified goods irrespective of their classification. The same was the position prior to amendment in Rule 57Q (i.e. prior to 23.07.1996) when credit was available on components, spares and accessories of the specified capital goods irrespective of their classification". 8. Clauses (a) to (c) of the explanation (1) annexed to Rule 57Q of the erstwhile Rules covered specified capital goods falling und....
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....ar Ltd., [2014 (310) ELT 870 (Mad)], the Hon'ble High Court of Madras held that credit is admissible on Iron & Steel products falling under chapter 73 which are used as structural support to plant and machinery. That by applying the user test, these items become component of machineries and credit could not be denied on the ground that these items were not covered under definition of capital goods, under erstwhile Rule 57Q of Central Excise Rules, 1944. 11. The original authority has arrived at the conclusion that the impugned items are used in construction work, to make wall erections, foundations, sheds, support structures etc. It is observed that said structures cannot be considered as capital goods, and that these s....
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....e 57Q), and observed that the definition of capital goods is very wide. At this juncture, the Board Circular No. 276/110/96 TRU - dated 02.12.1996 becomes relevant. Further, as per definition of capital goods contained in Rule 2 (a), those goods falling under the clause A (i) to A (viii) when used in the factory of the manufacturer of the final product would come within the definition of capital goods. The activities carried out by machines/equipments listed by the appellant being essential part for completing manufacture of final product, in my view, the MS items used for erection/fabrication of such machines/equipments would also fall into the category of components/spares/accessories of capital goods. 14. The a....
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....the Hon'ble Court in the case of UOI Vs Associated Cement Company Ltd., [2011 (267) ELT 55 (Chattisgarh)] relied on the judgments in Jawahar Mills Ltd., case and Rajasthan Spinning & Weaving Mills Ltd., case to hold that credit availed on Ms items as capital goods and used for connecting/fitting fans, casing, ducting in kilns etc., is admissible. 16. From the above discussions, I am of the opinion that the reliance made by authorities below on the case of Vandana Global Ltd., to disallow the credit on MS items used for machines/equipment is misplaced. Accordingly, I hold that credit availed on MS items used for machinery and equipments is to be allowed. The impugned items used for plant shed, generator shed, fibre/cemen....