TaxTMI 
TaxTMI 
2018 (3) TMI 622
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.... had availed the Cenvat Credit on CR Coils, M.S. Flats, Angle, Channels etc. by treating them as Input during the period from February 2007 to June 2009 amounting to Rs. 21,62,233.00. 2. A Show Cause Notice dated 15.02.2010 was issued to disallow the Cenvat Credit along with interest and to impose penalties. The Adjudicating authority confirmed the demand of Cenvat Credit of Rs. 21,62,233.00 along with interest and imposed penalty of equal amount of Cenvat Credit. By the impugned Order, the Commissioner (Appeals) allowed the appeal of the Assessee and set aside the Adjudication Order. Hence, Revenue filed this Appeal. 3. Heard both the sides and perused the records. 4. The Learned Authorised Representative for the Revenue reiterated the ....
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....ial/judicial forums referred at para 5.6 and 5.7 above, the test to be applied in the impugned matter is whether, without the impugned structural materials, the machinery could be erected and be made functional at all. I would note that the Appellant submits that, that in 566.585 MT of Iron and Steel materials used for supporting structures/sheds in respect of which CENVAT credit is already reversed and is also not subject matter of the instant case. The Appellant utilized the balance quantity of 521.060 MT for manufacture of the impugned Capital Goods i.e. Chimney and Chimney Pipes, Roller Conveyor, Cooling Tower Pipeline, Water pipeline, Cooling Bed Strips, Looping Tray, Cooling Bed, Base Frame of Re-heating Furnace, Base Rails, Panel, Pa....
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....gned Capital goods, the manufacturing operations and merely a structure for support of material used for support or embedding to the earth. I would note that the Hon'ble Tribunal in Commr. of Customs & Central Excise, Vishakapatnam Vs. Hindusthan Petroleum Corpn. Ltd. -2016 (338) E.L.T. 308 (Tri.-Hyderabad) has held that HR Sheets and plates used for repair, maintenance of storage tanks used for storing petroleum products, deliberately keep under earth as a safety measure in terms of statutory norms specified, therefore, being integral part of manufacturing process is admissible to credit. As I peruse from the impugned OIO, I see that the Adjudicating Authority has primarily relied of quasi-judicial/judicial rulings and reject the impugned ....
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....rt evolved user test to answer the question whether the items falls within the purview of capital goods and held that in the case of Rajasthan Spinning Mills (supra) that steel plates and MS channels used in the fabrication of chimney would fall within the ambit of capital goods . The Hon'ble Karnataka High Court in the case of SLR Steels Ltd. [2012 (280) E.L.T. 176 (Kar.)] held as under : "7. A perusal of the aforesaid provision makes it very clear though storage tanks may be immovable property and the pollution control equipment are included within the definition of capital goods , input as defined in Rule 2(k) makes it clear that input includes in goods used in the manufacture of capital goods which are further used in the factory of t....
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....uch cement and steel. Therefore, there is no ambiguity in any of these provisions. When once a storage tank and pollution control equipment constitutes capital goods and any raw material purchased for construction of those goods, the duty paid could be utilized as a Cenvat credit by the assessee notwithstanding the fact that the storage tank is an immovable property." 8. The Hon'ble Madras High Court in the case of CCE v. India Cements Ltd. [2014 (310) E.L.T. 636 (Mad.)] held that MS plates, angles, channels, etc. used in the erection of various machineries such as electrostatic precipitator for raw mill project, additional fly ash handling system, MMD crusher, etc. can be considered as eligible for Cenvat credit as component of capital g....