2017 (10) TMI 845

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....e ground that these items were structural items ordinarily used for civil construction or construction of factory shed. By the impugned order, the Commissioner (Appeals) set aside the adjudication order. Hence, Revenue filed this appeal before the Tribunal. 2. The Revenue in their grounds of appeal stated that the assessee submitted a Chartered Engineer s report by which it is proved that the manufactured goods are installed with nuts and bolts. But in various case laws, it is held that the items were used for structure embedded to earth. Revenue cited several case laws in their grounds of appeal. For the proper appreciation of the case, the relevant portions of the findings of the Commissioner (Appeals) are reproduced below: " ....

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....ition of capital goods as laid down under rule 2 (a)(A)(i) of the said Rules. 10. In order to ascertain that whether or not the above goods are capital goods, I visit rule 2(a) (A) of the said Rules which defines capital goods as " " RULE 2. Definitions. In these rules, unless the context otherwise requires,- (a) capital goods means:- (A) The following goods, namely:- (i) all goods falling under Chapter 82, Chapter 84, Chapter 90, [heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804] of the First Schedule to the Excise Tariff Act; (ii) pollution control equipment. (iii) Components, spares and accessories of the goods specified at (i) and (ii)....

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....ered in the definition of capital goods are certain goods specified in the definition. In other words, the items specified in the definition of capital goods, as given in Rule 2(a) have to be goods . It is the settled law that the goods have to be something which is movable and something fixed and embedded to earth cannot be called goods. 14. I find from the chartered Engineer s certificate that in the instant case the said inputs were used for manufacture of parts of pollution control equipments and tubes,pipes & fittings thereof, which in turn used for manufacture of their finished goods in the factory of the appellant and the said capital goods are installed with nuts and bolts with base plates/frames on foundation and can be di....