AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (11) TMI 470
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....linker silo, Ash Silo etc.); (f) Fabrication of machinery/mechanical equipment s, erection/commissioning ; and (g) Fabrication of ancillary items viz. Hopper, Ducts, Chuts, Chimney, Expansion bellows, Pipe and other connecting/fitting etc." 2. The appellants availed cenvat credit of duty paid on steel items used in the above activities except at Sl.No.(a) above, upto 6.7.2009. Thereafter, they have availed credit of duty paid on steel items with reference to (d), (e) and (f) stated above and did not claim credit on (a), (b) & (c). In these circumstances, the department entertained a view that the appellants were availing cenvat credit, which are not eligible to them and accordingly issued three show cause notices to demand and recover cenvat credit availed on various steel items. The main ground for the demand is that these steel items were used in the fabrication of supporting structures and also in creation of immovable assets and as such, the appellants are not eligible for credit. The Original Authority decided these notices vide impugned order dated 8.10.2012. The Commissioner in the said order disallowed a credit of Rs. 3,14,26,448/- and imposed equal amount of penalty o....
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....me part of immovable structure in the large fabrication involved in the creation of cement plant. These civil structures per se cannot be termed as capital goods. The goods, which are attached to the earth in a manner to make them immovable cannot be considered as capital goods. Consequently, any steel items used in conjunction with such immovable items cannot be allowed credit. 8. We have heard both the sides and perused the appeal records. 9. It is the case of the appellant that exclusion made w.e.f. 7.7.2009 as per the amended definition under Rule 2(k) of CCR is of no relevance to their case. The exclusion made is to the effect that the inputs used in the manufacture of capital goods elgible for credit shall not include cement, angles, channels, CTD bar, TMT bars and other items used for construction of factory shed, building or laying foundation or making structures for support of capital goods. The applicability of such exclusion for the period prior to 7.7.2009 has been examined by the Hon'ble Gujarat High Court in the case of Mudra Port (supra).It was held that exclusion brought in by the amendment cannot be given retrospective effect. The Hon'ble Madras High Court in Thi....
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....hineries purchased by the assessee were machineries themselves. Thus, after referring to the decision reported in 2010 (255) E.L.T.481 = 2010-TIOL-51-SC-CX (Commissioner of Central Excise Jaipur V. Rajasthan Spinning & Weaving Mills Ltd.), the Apex Court held that in view of the findings rendered by the Tribunal that the machineries were complete and having regard to the meaning of the expression "components/parts", with reference to the particular industry in question, the Apex Court rejected the appeal filed by the assessee. 11. Thus going by the factual finding, which are distinguishable from the facts found by the Authorities below in the case on hand, we have no hesitation in rejecting the Revenue's appeal, thereby confirming the order of the Tribunal. 12. Learned standing counsel appearing for the Revenue pointed out that the Tribunal had merely passed a cryptic order by referring to the earlier decisions. We do not think that this would in any manner prejudice the case of the Revenue, given the fact that on the identical set of facts, the assessee's own case was considered by this Court and by following the decision reported in 2010 (255) E.L.T.481 = 2010-TIOL-51....
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....tions, Channels, TMT Bar etc., which have been used by the appellants in the fabrication of support structures on which various capital goods are placed? The same stands denied by the lower authority. The learned DR has sought disallowance of the same by citing the decision of the Larger Bench in the case of Vandana Global Ltd. (supra) and other judgments. Further, he has brought to our notice and emphasised the amendment carried out in Explanation-II to Rule 2(a) which defines the term input w.e.f. 07.07.2009. It has further been pleaded that the cenvat credit claimed for the period prior to this will be covered within the decision of the Larger Bench in the case of Vandana Global Ltd. (supra). 14. The Larger Bench decision in Vandana Global Ltd. s case (supra) laid down that even if the iron and articles were used as supporting structurals, they would not be eligible for the credit, considering the amendment made w.e.f. 07.07.2009 as a clarification amendment and hence to be considered retrospectively. However, we find that the said decision of the Larger Bench was considered by the Hon'ble Gujarat High Court in the case of Mundra Ports & Special Economic Zone Ltd. 2015 (04) LC....
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.... instance, it cannot be said that the credit on storage tank and other large capital goods will be allowed only if they are brought into the premises of the manufacturer as such in a movable condition. Storage tanks and pollution control equipments, etc are fabricated and integrated to the other machines of the plant in a factory. When a storage tank is linked to the other processing machine, the pipe and other fittings including their accessories, which hold such linkage will necessarily form part of the machinery and cannot be denied credit on the ground that they are fixed permanently. In any case, except for a summary assertion in the impugned order, it is not categorically established in the present case that all the steel items are used in creation of immovable assets only. On the contrary, the appellants submitted detailed certificate by a Chartered Engineer. We have perused the same. The said certificate records that upon physical examination, it was certified that the steel items have been used for fabrication of various equipments/accessories in various locations of the plant. A detailed list of the description of location and nature of use has also been provided. We have....