2017 (3) TMI 544

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.... falling under Chapter heading 8402 of the first schedule to the Central Excise Tariff Act. 3. M/s. Monnet Ispat Ltd. placed the order for manufacture and supply of boilers and container, plant and machinery for its captive power plant. The contract was for supply of entire boiler and for commissioning of these boilers at the factory site of the appellant.   4. M/s. Cethar Vessels Pvt. Ltd. cleared the boiler in dis-assembled form and subsequently assembled the same at the factory of M/s. Monnet Ispat Ltd. Controversy arose when the officers of DGCEI visited both the factories. It was noticed by the DGCEI officers that M/s. Cethar Vessels Pvt. Ltd. was clearing to M/s. Monnet Ispat Ltd. parts, components and accessories of boiler....

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....Monnet Ispat & Energy vide Final order no. 52244/2016 dated 29.06.2016. iii) Monnet Ispat & Energy Ltd. Vs. CCE Raipur vide Final order no. A/52567/2015 dated 03.08.2015. 6. Ld. Counsel also submitted that identical issue of classification of steel structures for boilers has been upheld by the Hon'ble Supreme Court in the case of Swetha Engineering Ltd. Vs. CCE Chennai 2016 (335) ELT 193 (SC). 7. In the above case, the Hon'ble Apex Court has decided that clearance of boilers in unassembled form are to be classified under 840290. Accordingly, she submitted that the Cenvat Credit availed by M/s. Monnet Ispat Ltd. is in order. 8. Ld. DR supported the order passed by the Ld. Commissioner. 9. M/s. Cethar Vessels Pvt. Ltd. manufact....

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....bal Vs. CCE 2010 (253) ELT 440 (Tri-LB). 10. Boilers have been manufactured by M/s. Cethar Vessels Pvt. Ltd. and supplied to M/s. Monnet Ispat Ltd. in dis-assembled form. The entire boiler has been put together at the site of M/s. Monnet Ispat Ltd. by way of erection. Various parts which constituted the full boiler were classified and cleared by M/s. Cethar Vessels Pvt. Ltd. under chapter 8402. This obviously included the parts which were fabricated and used as supporting structures. Hon'ble Supreme Court in the case of Swetha Engineering Ltd. (Supra) have examined the classification of supporting structures for boiler. The Hon'ble Apex Court has held as follows: "4. Issue arose as to whether the steel fabricated structures manufactur....

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....be used as parts of Boiler System would be classifiable as parts of Boiler only under Heading 8402 of the Tariff. This clarification, thus, vindicates the stand which was taken by the assessee throughout by rightly classifying the parts of the boilers under Chapter sub-heading 8402.90 of the Central Excise Tariff Act, 1985. 8. In view of the foregoing, this appeal is allowed by setting aside the impugned order passed by the CESTAT as also the order of the Commissioner (Appeals). There shall, however, be no order as to costs." 11. In the Tribunal's decision in the case of M/s. Singhal Enterprises Pvt. Ltd. (Supra) it has been held that the Cenvat Credit is allowable in respect of various structural items which are used for making suppo....