TaxTMI 
TaxTMI 
2017 (5) TMI 1243
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.... lower authorities that appellant took Cenvat Credit of the duty paid on HR plates and other items which are falling under Chapter 72 of CETA, 1985. Accordingly, a show cause notice was issued directing appellant to show cause as to why the amount of cenvat credit availed on such items which are falling under Chapter 72 be not demanded alongwith interest and penalty be imposed on them. Appellant contested the matter on merits before the adjudicting authority. Adjudicating authority confirmed the demands raised by lower authorities, holding that Cenvat credit availed of the central Excise duty paid on the inputs which are falling in Chapter 72 and cannot be considered as capital goods. On an appeal, the first appellate authority also concurr....
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....td Vs. CST, Mumbai-II [2016-TIOL-1593-CESTAT-MUM] and ITC Ltd Vs. CCE&C, Hyderabad-III [2017-TIOL-635-CESTAT-HYD]. He would also submit that Division Bench of the Tribunal in the case of Lafarge India Pvt. Ltd. Vs. CCE, Raipur [2016-TIOL-2875-CESTAT-DEL] was also considering similar issue and held in favour of the appellants therein. 4. Ld. Departmental representative on the other hand draws my attention to the findings recorded by lower authorities. He would submit that the storage tanks which are fabricated are very huge and are for storage of liquids and therefore they have to be treated as immovable property and such immovable properties cannot be charged with central excise duty. It is his submission that the said fabricated tanks are....
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....n steel, cement which were used for construction of pollution control equipments as well as storage tanks. After analysing the provisions of Cenvat Credit Rules and arguments made, their Lordships in para 5 framed the following substantial question whether the duty paid on steel and cement which was used for the construction of storage tank and pollution control equipment could be availed of by the assessee as cenvat credit?". 6. After framing the said substantial question, their lordships decided the issue, which I with great respect reproduce: "6. In order to answer this question, it is necessary to look into the definition of capital goods as contained in the Cenvat Credit Rules, 2004 which reads as under: Rule 2(a) Capital goods me....
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.... or Thermo Mechanically Treated Bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods." 8. Therefore, the notification of the Legislature is very clear that it is only the inputs used in the manufacture or construction of capital goods which is construed as input and cenvat credit is available on the duty paid in purchase of such inputs. If the cement, angles, channels, Central Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (T.M.T) and other items are used in the construction of factory shed, building or laying of foundation, the duty paid on such items the assessee would not be entitled to cenvat credit. Similarly, though the....