2017 (3) TMI 645

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....e undertaken substantial expansion of their cement plant for which several machineries were imported on payment of applicable duties. The drawings and designs were imported for use in the erection, commissioning, operation and maintenance of the cement plant. At the time of import of the designs and drawings Bill of Entry dated 18.12.2006 was filed for clearance of the same. In the Bill of Entry, the CVD payable was mentioned as nil, however, the Assistant Commissioner (C) clarified that basic customs duty as well as CVD and SAD were paid by the appellant. Cenvat Credit was availed considering these designs and drawings as inputs. Revenue took a view that the Cenvat Credit availed was improper and after issue of show cause notice dated 12.1....

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....ses, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production." 7. In addition, components, spares and accessories of capital goods also are permissible under Rule 2(a). What has been imported by the appellant are design and drawings which have been classified under customs Tariff Heading 4906 under the relevant Bill of Entry. In these designs and drawings the general arrangement and location of the various equipments of the cement plant as well as static and dynamic loads of the equipment....

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....ve been embedded to earth on foundation making up the entire cement plant. The property of designs and drawings are intangible and do not fall within the description of either inputs or capital goods. The ld. Commissioner in the impugned order has given detailed reasons for disallowance of such credit, he has held as follows: "The show cause notice mainly proposes to deny the Cenvat Credit on the ground that the cement plant which got erected and commissioned with the help of the drawings and designs became an immovable property, thus outside the scope of capital goods. It's a fact the subject inputs i.e. drawings and designs were not like physical parts used in storage tank or chimney or any other capital goods but it was used as guidan....