2018 (9) TMI 724

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..... On 07.01.2015 and 21.01.2015, notices were issued by the respondent for the respective assessment years to reverse the Input Tax Credit of Rs. 14,31,750/- and Rs. 44,15,340/- on the purchase value of renewable energy device & spare parts, Boilers, Boiler components and materials for Erection of Boilers claimed under Section 19(3)(a) of the Act. The respondent has not reversed ITC claim on the ground that renewable energy device & spare parts, Boilers, Boiler components and materials for Erection of Boilers are not involving in manufacturing process or packing or storing of the goods in the course of business and the goods do not fall under the category of "capital goods". The petitioner filed his objections on 04.02.2015 & 09.02.2015 and ....

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...." 2. It is useful to refer under Section 2 (11) of the Act, wherein, the capital goods is defined, which reads as under: "capital goods"means-- (a) plant, machinery, equipment, apparatus, tools, appliances or electrical installation for producing, making, extracting or processing of any goods or for extracting or for bringing about any change in any substance for the manufacture of final products; (b) pollution control, quality control, laboratory and cold storage equipments; (c) components, spare parts and accessories of the goods specified in (a) and (b) above; (d) moulds, dies, jigs and fixtures; (e) refractors and refractory materials (f) storage tanks; and (g) t....

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....r components and materials for Erection of Boilers as integral parts. 8. The question as to whether the renewable energy device & spare parts, Boilers, Boiler components and materials for Erection of Boilers are essential for manufacturing process or not, has to be decided. 9. From the diagram, it is seen that Biomass Gasifier Unit is an manufacturing unit. That will certainly fall under the definition of apparatus or spare parts or accessories. In such circumstances, the goods used in the manufacturing process shall be taken as "capital goods" and the benefit under Section 19(3) shall be allowed. 10. In the similar circumstances, in W.P.(MD)No.14828 of 2010 dated 24.04.2018, in the case of Thiagarajar Mills (P) Ltd., vs. Additiona....