2016 (9) TMI 734

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....alf of the Appellant submitted that out of the total Cenvat Credit denied by the first appellate authority, an amount of Rs. 67,581/-(Rupees Sixty Seven Thousand Five Hundred and Eighty One only) pertains to Cenvat Credit taken on steel and bent, which is not being contested by the Appellant. That the remaining credit is with respect to EOT Crane and Gratings which are capital goods and credit is admissible to the Appellant under Cenvat Credit Rules. Ld.Advocate submitted that EOT Cranes are over-head Cranes moving on fixed rails and pulleys. That these parts on which over-head Crane moves are essential for the working of the Cranes and cannot be considered as support structures. Learned Advocate relied upon the HSN Explanatory Notes given ....

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.... items like pulleys and rails are fixed to the walls on which over-head EOT cranes are moving. As per HSN Explanatory Notes under 84.26 for Gantry Cranes and over-head cranes, the beam of the cranes runs on rails fixed on walls or on suitable supporting metal structures. It is also explained that when such machines are fitted or designed to be fitted with the mechanical features essential for operation of the moving parts of the complete installation (like beams, rollers, pulleys, guide rails etc.) then the same will also be classified under Tariff Heading 84.31. In view of the above when structures like rollers, pulleys and guide rails are essentially required for the functioning of crane then the same have to be treated as an accessory of....

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....re used to hold crane girder in position properly while crane is working. In view of their use, all these goods are essential accessories for EOT crane installed in respondent s factory as EOT crane cannot perform without them. The second group includes Base Frames for various machines/machineries such as Air Pre-heater, SH Casing, Coal Feeder, Deacrator Drum, ID Fan, Motor, Ash Dryer/Pump, (Ash Dyke Motor and Pump) and Silo Pump. All these Base Frames are fabricated/manufactured according to specific design and drawing for specific requirement and on which various machines/machinery of the plant are installed for achieving required rigidity and vibration free function. These Base Frames are not performing any individual function as a machi....