2018 (7) TMI 1707

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....2824 and 3812 of First Schedule to the Central Excise Tariff Act, 1985. The appellant was observed to have availed Cenvat Credit on inputs and capital goods under Rule 3 of the Cenvat Credit Rules, 2004 on the ground of those being used for the manufacture of their final products. The Department during the scrutiny had noticed that the said credit has been availed on MS Bars, MS Channels, MS Joists & MS beams etc. which the Department while issuing the said show cause notice had denied to be considered as inputs and finally a demand as mentioned therein was raised. Dy. Commissioner vide its order dated 12th May, 2017 has confirmed the demand. Commissioner (Appeals) vide the order under challenge though has reduced the penalties to Rs. 5000/....

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....ccordingly, prayed to be allowed. 4. Ld. DR while justifying the order has impressed upon para 8 of the same, mentioning that Commissioner (Appeals) has duly considered the definition of capital goods as provided under Rule 2 (a)of Cenvat Credit Rules, 2004 and has specifically held that MS Bars, Channels etc. upon which the appellant have been availing credit do not to fall under any of the clause i.e.(iii) to (vii) of the said definition. Denying any alleged infirmity and the availability of the CA Certificate, the Appeal is prayed to be dismissed. 5. While rebutting the CA Certificate, the same is impressed upon to very much be the part of appeal memo certifying that for installation of capital goods the foundation for which MS Bars, M....

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....ts, but does not include any equipment or appliance used in an office; or (2) for providing output service; (B) ................ (k) "input" means- (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of product....

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.... goods. I hereby draw my support from the adjudication of Madras High Court in India Cements case (supra) wherein it is held as follows: "5. The Tribunal held that the assessee satisfied the user test. The Tribunal, while allowing the appeal, followed the earlier order of this Court and the law laid down in the case of Commissioner of Central Excise, Jaipur v. Rajasthan Spinning & Weaving Mills Ltd., reported in 2010 (255) E.L.T. 481) and in paragraph Nos. 7 and 8, held as follows : 8. After considering the use of the goods in question, in our considered view, the present case is covered by the decision of the Hon'ble Madras High Court in appellant's own case as referred above. We have also noticed that the Hon'ble Supreme Court in the c....