2017 (9) TMI 448

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....nder Chapter 48 of first schedule to Central Excise Tariff Act, 1985. They were also availing Cenvat credit facility. During the course of checking of invoice of capital goods Central Excise Officers found that the appellant had taken Cenvat credit of Rs. 3,19,969/- i.e. 50% of Cenvat credit of Rs. 6,39,938/- in the Financial Year 2008-09 on HSD Bars, TMT Bars & MS Bars under capital goods. Central Excise Officers conducted investigation and recorded statement dated 29/12/2008 of Shri Manish Jain, Authorized Signatory who stated that the said HSD Bars, TMT Bars & MS Bars were used for making civil foundation to erect the other capital goods. Further, it appeared to Revenue that the said Cenvat credit of Rs. 6,39,938/- was not admissible. Th....

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....ontrol equipments and pollution control equipments were qualified to be treated as capital goods. Therefore, so far as the said bars used for making pollution control equipments are concerned Cenvat credit in respect of the same is admissible. She has further submitted that remaining part of the bars were used for making civil foundation to erect the other capital goods. She has relied on ruling by Hon'ble High Court of Madras in the case of Commissioner of Central Excise, Tiruchirapalli Versus India Cements Ltd. reported at 2012 (285) E.L.T. 341 (Madras) wherein it has been held that CTD Bars, TOR Steel & Cement if used for civil construction which are absolutely necessary for establishing a manufacturing unit for creating foundation f....

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....under Chapter 72 as checkered plates, sections, etc. or under Chapter 73 as staging material, if subjected to various processes, which go to the erection of shed and erected structures. The appellant admits that these plates, sheets, sections, etc. were used in the factory for the purpose of constructing platform for use of the running of machinery. By no stretch of imagination these items could be considered as sugar mill machinery. He has further contended that the goods in question were used only for the purpose of raising civil structures. and consequently, cannot be termed as capital goods. 5. Having considered the contentions and on perusal of the facts on record, I find that the contention of the appellant is sustainable which relat....