2018 (7) TMI 974

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....he appellant argued that the appellants are engaged in manufacture of steel. The appellants obtained a Gas Manufacturing Plant under the Plant Live Agreement. They availed CENVAT Credit on the items/goods used for the erection of Gas Manufacturing Plant though no Central Excise duty was paid on the said plants. After examining the live agreement, Revenue sought to deny the CENVAT Credit by issue of show-cause notice, what was later confirmed. The appellants are in appeal against the same. Learned Counsel submits that an identical issue was decided in the case of JSW Steel Ltd. - 2015 (327) ELT 549 (Tri-Mum). 3. Learned AR relies on the impugned order. 4. We have gone through the rival submissions. We find that an identical issue has b....

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....ing immovable property, Cenvat credit is sought to be denied. Nowhere in the Cenvat Credit Rules, it is envisaged that the machinery, equipment, appliances or their components should be used as such in the manufacture of excisable goods. The manufacturing plant facility in a factory would comprise of a number of capital goods and all these things have to be assembled together so that they act in unison to perform the required processes. For example, in a sugar factory there may be a Boiler plant for generation of steam, a crusher installed for crushing of the sugar cane, a distillation plant for undertaking the various chemical processes involved in the manufacture of sugar. The boiler, crusher and distillation equipment, all have to be ass....

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....e appellant from availing Cenvat credit of the excise duty paid on capital goods. Similarly, in the case of Gujarat Ambuja Cement Ltd. (supra), Rajarambapu Patil SSK Ltd. (supra) and KCP Ltd. (supra), this Tribunal and the Hon'ble High Court of Himachal Pradesh held that Cenvat credit of excise duty paid on parts, components and accessories would be admissible under the Capital Goods Credit scheme even if they are assembled into goods which are immovable or exempted. Similarly, in the ICL Sugars Ltd. (supra), it was held that immovability has no bearing on eligibility for availment of Cenvat credit on capital goods. In the light of these decisions, the interpretation of law undertaken in the impugned order does not appeal to any common sens....