2017 (4) TMI 800

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....regular availment of CENVAT credit on capital goods, to the tune of Rs. 13,55,726/- and also credit availed on M.S. items to the tune of Rs. 20,30,368/-. Another allegation was the credit availed on input service of GTA used for transportation of capital goods to the tune of Rs. 62,681/-. After the stage of adjudication as well as appeal before Commissioner (Appeals), the credit availed on capital goods to the tune of Rs. 13,55,726/- was allowed. However, the credit availed on M.S. items and credit on input service of GTA was disallowed by both the authorities below. Hence this appeal. 3. On behalf of the appellant, Ld. Counsel Shri Y. Srinivasa Reddy submitted that the appellant is not pressing the demand in respect of credit availed on&n....

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....ii) M/s Ultra Tech Cements Ltd. Vs CCE, CST, Tirupathi [2017-TIOL-503-CESTAT-Hyd]. iii) M/s Covalent Laboratories Pvt. Ltd. Vs CCE, Hyderabad [2016(344)E.L.T641(Tri.-Hyd)] iv) M/s Hetero Labs Limited Vs CCE&ST, Visakhapatnam [2017-TIOL-378-CESTAT-Hyd]. 4. Against this, the Ld. AR, Shri P.S. Reddy reiterated the findings in the impugned order. He submitted that appellant has used MS items for supporting structures of capital goods. When the said supporting structures are embedded to the earth, they become immovable property making them capital assets and therefore credit is not admissible as laid down in the judgement in the case of M/s Vandana Global Ltd. Vs. CCE, Raipur (supra). 5. I have heard the submissions made by both parties. T....

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....ch other capital goods fabricated using the MS items, the process of manufacture cannot be carried out effectively by the appellant. It has to be stated that on introduction of explanation in the definition of inputs after 07.07.2009 the restriction is only when the MS items are used for construction of shed, laying of foundation etc. Major thrust by the department is on the decision laid by Larger Bench of Tribunal in the case of M/s Vandana Global Ltd. The issue was already considered by the Tribunal in the case of M/s India Cements Ltd. Vs CCE, Hyderabad in Final Order No. A-3051312016 wherein the Tribunal held as under: The major thrust by department is on the dictum laid by Larger Bench of Tribunal which held that Explanation 2 to Ru....

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....for fabrication/erection of capital goods is admissible. Following the propositions laid in the appellants own case, I hold that the denial of credit is unjustified. The impugned order is set aside. The appeal is allowed with consequential reliefs, if any." Similar view has been taken in other cases relied upon by the appellant. Following the same, I hold that the credit availed on MS items used for supporting structures is eligible for credit. 7. The Ld. Counsel has also argued on the grounds of limitation. As regards the allegation that the appellant is guilty of suppression of facts, there is no evidence to establish that the appellant has committed suppression of facts with intent to evade payment of duty. It is also seen that the app....