2018 (9) TMI 727

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....llation of machinery in the factory, they have procured various steel items such as, plates, angles, channels, sheets etc., used in the factory as supporting structures for capital goods and installation of certain machinery and claimed CENVAT credit on inputs as input credit on these products. It is not in dispute that these items were used in manufacture of equipment and parts for setting up the cement plant. These items were used as in production of their capital goods. Show cause notice was issued to the appellant on 23.10.2009 covering the period October, 2004 to November, 2008 after expiry of normal period of limitation of one year seeking to deny credit on these items on the ground that these items are not inputs as they are used in ....

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....used in the manufacture of capital goods which are further used in the factory of manufacturer". 4. The Learned Commissioner confirmed the demand along with interest and imposed a penalty equivalent to the amount. The Learned Counsel for the appellant submits that as per Rule 2(k) of the CENVAT Credit Rules, 2004 as applicable to during the relevant period, input include goods used in the manufacture of capital goods. The capital goods which they manufactured do not cease to be so simply because there also installed to the ground. It is the contention that the capital goods like Raw Mill, Coal Mill, Cement Mill, Packing Plant etc., are all integrated items and therefore they are fixed to each other and to the ground. This does not itself r....