2018 (9) TMI 909

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....returns for the period April to December, 2014, it was notices that the appellants had availed CENVAT credit of Rs. 2,27,54,792/- on capital goods. Since the appellants were availing exemption under Notification No. 08/2003-CE, they were asked by the jurisdictional Central Excise Officer to reverse the CENVAT credit availed on the capital goods. Since the appellants did not reverse the CENVAT credit, correspondence was exchanged with them and investigation was conducted in the matter where it was found that the job worker/fabricator had fabricated various items such as Chimney, M.S. Silo for Fly Ash, Storage Tank etc., which were found to be permanently embedded to earth in such a way that these could not be removed without dismantling them....

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....assessee was availing the benefit of the exemption Notification No. 08/2003-CE dated 01.03.2003 in terms of Para 2(iii) of the exemption Notification which bars the availment of credit on inputs, iron & steel namely M.S. Angles, Beams, M.S. Channels, Bars, Plantes, Shapes and Sections which were used by the assessee in fabrication of parts of plant and machinery which were permanently embedded to earth or to provide access to various machines, he further submitted that these items do not qualify as inputs used for the manufacture of capital goods and therefore the cenvat credit on these goods is not admissible, he also referred to the definition of the capital goods as provided under Rule 2(a) of the Cenvat credit Rules, 2004. He further su....

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....were used in the capital goods which had been put to captive uses in the factory for the manufacture for final product. Further, I find that under Rule 2(k) of the credit rules, inputs in the case of goods used in the factory of manufacture of final products, these goods were used towards the manufacture of capital goods used in the factory for final product captively which are exempted by way of Notifacation No. 67/95-CE dated 16.03.95, further, I find that this issue is no more res integra and is covered in favour of the assessee by various decisions cited (Supra), in the case of Ritesh Trade Fin Ltd. Vs. Commissioner of Central Excise, Bolpur (Supra) the Tribunal has held as under: Cenvat/Modvat-inputs- used in manufacture of ca....