2016 (6) TMI 1056

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ondent ORDER The issue involved is the admissibility of CENVAT credit on MS angles, plates, beams, channels etc., used for supporting structures of boilers and reactors. 2.  The appellants are engaged in the manufacture of inorganic chemicals, organic chemicals, and miscellaneous chemical products, and are availing input credit of duty paid on inputs.  The allegation is that dur....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eged by the department that the appellant did not disclose the details of capital goods fabricated in their ER-1 return and that therefore is guilty of suppression.  The appellants used the MS items for installing and erecting the boilers and reactors.  That this was well within the knowledge of department as these capital goods cannot be erected without such support structures, and cann....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....earned AR, Sri Chakravarthy vehemently argued that extended period has been rightly invoked and that credit is not admissible on impugned items used for support structures of capital goods.  He submitted that reactors & boilers were fastened to earth,  making them immovable property and therefore credit is not admissible.  The appellant received the items and declared them as capita....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....partment well beyond the normal period.  It is not stated by department as to why they have not scrutinized the returns within the normal period. 6.  The issue whether credit is admissible on MS items was contentious and there were several decisions in favour of the appellant during the material time.  The contention of the appellant that they availed credit on bonafide belief th....