TaxTMI 
TaxTMI 
2018 (1) TMI 369
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....ice dated 22.09.2008 was issued proposing to deny the Cenvat Credit on various inputs availed during the period from September 2007 to May 2008, which are not coming within the definition of Inputs or Capital Goods under the Rule, 2004. The Adjudicating authority confirmed the demand of Cenvat Credit of Rs. 40,01,750.00 along with interest and imposed penalty of equal amount of Cenvat Credit and also appropriated the amount of Rs. 15,58,732.00 as reversed by the Assessee. By the impugned Order, the Commissioner (Appeals) modified the Adjudication Order in so far as disallowed the credit of Rs. 16,46,940.00 out of the total demand and set aside the penalties. 3. The Revenue filed this appeal against the Order of the Commissioner (Appeals). ....
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....ly availed. 10. A credit of Rs. 5,53,271/- has been taken in respect of HR plates/sheets and HSM plates, Rs. 2,09,713/- in respect of angles, Rs. 4,08,221/- in respect of plates. Further, a credit of Rs. 82,435/- has been taken in respect of welding electrodes. HR Plates/sheets/angles and HSM plate have been used and cut to size and welded using welding electrodes to manufacture cooling beds, roller beds and collecting pockets. These manufactured cooling beds, roller beds and collecting pockets are items on which the hot rolled bars are kept for cooling and collecting from the roller beds. Without cooling the hot bars on these cooling and collecting beds, the finished products cannot be manufactured. In other words, these cooling beds, c....
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....chines are fixed to the ground with screws but not embedded in the earth with civil structure. These machines can be removed as such without breaking up or dismantling. These TMT machines are goods falling under Chapter 84. Thus cooling beds, roller beds and collecting pockets being accessories of goods under Chapter 84 are also capital goods in terms of the definition of capital goods as given in rule 2 (a) of the Cenvat Credit Rules, 2004. HR Plates/sheets/angles and HSM plate and welding electrodes, which have used to manufacture cooling beds, roller beds and collecting pockets are inputs in terms of Explanation 2 in the definition of input in rule 2(k) of the Cenvat Credit Rules, 2004. Being inputs, the appellant has rightly availed cre....
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....ince these are parts of the conveyor, hence these are nothing but capital goods. Hence the appellant is entitled to take capital goods credit. " 6. The Learned A/R for the Revenue drew the attention of the Bench to the Grounds of Appeal. It is submitted that ERW Pipes are rejected ones as seen from the Invoices. Pre-engineered buildings are basically civil structure. FA-N-HG and FA-N/FA A-IS appeared to be not used in the manufacture as claimed by the Respondent. The Revenue strongly relied upon the decision of the Larger Bench of the decision in the case of Vandana Global Ltd Vs. CC Raigad 2010 (253) ELT 440 (Tri-LB). 7. I find that the appellant had produced the Chartered Engineer Certificate to substantiate the use of the inputs and ca....
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....l of credit is bad in law. However, on appeal, the Ld. Appellate Commissioner allowed the credit as rightly availed. c) Paints and Grease : Credit availed Rs. 13,723/- and Rs. 36,834/-respectively Denial of credit on Paints and Grease is totally beyond the provisions of law. The definition as given in Rule 2 (K) (i) of Cenvat Credit Rules, 2004 has categorically stated that input means all goods goods used as paint or as packing material, or as fuel .used in or in relation to manufacture of final products or for any other purpose within the factory of production . Thus it was submitted that the Respondent was entitled to avail credit on paints and Grease as input. However, on appeal, the Ld. Appellate Commissioner allowed the credit as ri....
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....21/- in respect of Plates, Rs. 82,435/- in respect of Welding Electrodes which was disallowed by the Ld. Joint Commissioner of Appeal. Ld. Appellate Commissioner observed that HR Plates/Sheets/angles and HSM plate have been used and cut to size and welded using welding electrodes to manufacture Cooling Beds, Roller Beds and collecting pockets. These manufactured cooling beds, roller beds and collecting pockets are items on which the hot rolled bars are kept for cooling and collecting from the roller beds. Without cooling the hot bars on these cooling and collecting beds, the finished products cannot be manufactured. In this respect, L. Appellate Commissioner relied on the decision of Ld. Supreme Court in the case of M/s. Annapurna Carbon In....