TaxTMI 
TaxTMI 
2017 (1) TMI 1077
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....pellants are inter-alia engaged in manufacture of Sponge Iron and are registered with the Central Excise Department. They are availing CENVAT credit on various inputs, input services and capital goods. The appellants in order to set up Sponge Iron plant, procured various equipments such as rotary kiln, Program Logic Controller (PLC), Refractory Materials, Vibrating Screen, Motors, Belts, Rollers, Carrying Idlers, Weigh Feeders, Dust Collectors, Electrostatic Precipitators and various other electrical equipments and also fabricated certain parts, components and accessories required for the manufacture of capital goods. The appellants procured HR Plates, MS Plates, HR Coils, HR Sheets, Angles, Bars, etc., and used the same in fabrication of p....
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....a Sai Ispat Industries Appeal Nos. E/21975/2015 E/21976/2015 E/21980/2015 Periods of dispute February, to September, 2011 March & April, 2011 February, to September, 2011 Date of SCNs 06.03.2012 29.03.2012 07.03.2012 OIO Nos. & date 61/2012-CE dated 07.06.2012 62/2012-CE dated 29.06.2012 60/2012-CE dated 28.06.2012 OIO Nos. & date TTD-EXCUS-000-APP-015-15-16 dated 22.05.2015 TTD-EXCUS-000-APP-015-15-16 dated 22.05.2015.06.2012 TTD-EXCUS-000-APP-014-15-16 dated 22.05.2015 Credit denied Rs.5,57,140/- Rs.5,78,829/- Rs.5,37,569/- Penalty imposed Rs.5,57,140/- Rs.5,78,829/- Rs.5,37,569/- Issue Denial of CENVAT credit iron and steel items used in fabrication....
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....supporting structures of the capital goods and not on the civil constructions/platforms. The Ld. Counsel relied upon the decision in the case of India Cements Ltd., Vs. CESTAT [2015 (321) ELT 209 (Mad.)] to canvass the proposition that without such supporting structures, the machinery cannot be erected and cannot be put to function. He also submitted that the appellant has furnished a detailed reply to the Show Cause Notice along with the chartered engineer certificate in which the appellant has explained the usage of the MS items as well as the purpose of fabricating the capital goods. That after fabrication of the support structures they become part of the capital goods as without such support structures, the Kiln, Pollution Control equip....
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....llant had disclosed the availment of credit in ER-1 returns. The original authority called for report of the Range Officer. It is seen mentioned in the Order-in-Original that Range Officer reported that the MS items were not used for construction/laying foundation although the same is alleged in the Show Cause Notice. On perusal of chartered engineer certificate, in Sl. No. 33, it is seen stated that credit availed on MS items used for supporting structures for Kiln equipments, Conveyor System, Pollution control equipments. The appellant has also produced photographs to explain the nature of the supporting structures. He submitted that the supporting structures fabricated by using MS items are erected upon civil foundation for which also MS....
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.... is seen that the items in question were used in the erection of various machineries such as, - new additional Electrostatic Precipitator for raw mill project, additional fly ash handling system, MMD crusher etc., for the Dry Process Cement Manufacturing Plant. It is evident that MS Angles, MS Beams, MS Channels etc., were used in the erection of machineries it become component of the same, which are integral part of Dry Process Cement Manufacturing Plant. It is noted that Fly Ash handlish system is a pollution control equipment and particularly mentioned in Rule 2 (a) (A)(ii) of Rules, 2004. The allegation in the above show cause notice that the Chapter Heading of these items were not covered under Rule 2(a) of the Rules, 2004, is not sust....