2016 (11) TMI 1098

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....Rs. 30,32,830/- on various items like MS Angles, Channels, Plates, Rounds, HR Sheets etc. during the period September 2005 to March 2010. Proceedings were initiated by the Revenue to deny the said credit on the ground that they were neither inputs nor capital goods. The Original Authority disallowed the said credit and imposed equivalent amount of penalty under Section 11AC of the Central Excise Act, 1944. On appeal vide the impugned order the Commissioner (Appeals) set aside the original order. Aggrieved, the Revenue is in appeal against this order. 2. We have heard the learned AR for the Revenue. None appeared on behalf of the respondent. We find that main grounds in the appeal by the Revenue is that these steel items cannot be said to....

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....ve availed Cenvat credit on impugned items used in the manufacture of Hoper, Kiln, Kiln inlet house, Conveyor System, etc, which have a definite function in relation to manufacture of Sponge Iron and is entirely different from the supporting structures of plant & Machinery as held by the Adjudicating Authority. Also I have gone through the function and use of the items it can firmly said that, these items are nothing but parts and components or accessories of the Sponge Iron Unit and thus fall within the purview of Capital goods as defined under Rule 2 (a) of Cenvat Credit Rules, 2004. It can be seen from the above that credit on the inputs which are used in the manufacture of final product cannot be denied. I find strong force in the argum....