TaxTMI 
TaxTMI 
2018 (10) TMI 548
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....ppellant herein is engaged in the activity of removal of overburden and transportation of the same in the mining site of Singareni Colleries Co Ltd (SCCL), a Govt of India Company; by an agreement with SCCL they were to carry out the work of blast hole drilling, blasting, excavation, loading transportation, spreading, dumping of overburden by using machines at opencast mines. For purposes of transportation activities of the overburden, they imported chassis on payment of applicable customs duty, procured kit buckets, cylinders etc. and other body building material and assembled the same at their site as tippers and dumpers and used the same for the purpose of transportation of such overburden. They took CENVAT credit of the counterveiling d....
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.... Under Section 75 of the Act Penalties Redemption fine Rs.3,00,00,000/- Rs.6,50,00,000/- Penalty u/r 15 Rs.5,00,00,000/- Rs.11,00,00,000/- Show Cause Notice 16.04.2008 17.10.2008 It is his submission that the CENVAT credit availed on chassis and bodies, spare parts etc. for the tippers was correctly availed, as these tippers were used for transportation of overburden which is an output service on which appropriate service tax liability has been discharged. He takes us through the definition of the services rendered by them i.e. site formation and clearance services and also the definition of input service, inputs and capital goods and submits that the motor tippers which were used by them cannot be consid....
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....e confiscation ordered of the tippers and the spare parts was correct. 5. On a careful consideration of the submissions made, we find that there is no dispute as to the demand of the CENVAT credit under various heads as reproduced herein above in paragraph-3. 6. The arguments put forth by the learned counsel on their eligibility to avail CENVAT credit on chassis and bodies for tippers and spare parts for volvo tippers will not carry their case any further as the Tribunal in the case of Ganta Ramanaiah Naidu (supra) (wherein one of us Mr M.V. Ravindran was a Member) specifically on this point held in paragraph No 10 as under:- "10. We have considered the submissions made at length by both sides and perused the records. The undispute....
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....ving accepted the same, the said classification has attained finality. There is no dispute that the tipper is removed as a complete motor vehicle from the factory of manufacturer i.e. M/s. Volvo International Ltd." It can be seen from the above reproduced paragraph that similar issue has been decided and the Bench after reproducing the provisions of definitions of capital goods and inputs in the CENVAT Credit Rules (in paragraph No. 12) and specifically held that duty paid on motor vehicles cannot be considered as eligible CENVAT credit under capital goods or under inputs. The same view has been followed by the Bench in various other matters. We do not find any reason to deviate from such a view and hold that CENVAT credit on chassis and....
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....erusal of CENVAT Credit rules, we find that it does not contemplate for availment of CENVAT credit of motor vehicle cess. Accordingly, the CENVAT credit availed of Rs. 1,94,732/- and Rs. 87,899/- in both the appeals is incorrect and liable to be held as correctly confirmed by the adjudicating authority. We confirm the said amounts and uphold the order to that extent. 10. As regards confiscation of tippers and spare parts thereof we hold that such confiscation is unwarranted as the appellant during the relevant period may have entertained a bonafide belief that since the said tippers after assembly were used for rendering taxable output service, they are eligible for CENVAT credit. find that the provisions of Rules 15(1) of the CENVAT Cre....