2019 (2) TMI 939

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.... in all the three appeals is identical, therefore, all the three appeals are being taken up together for disposal. The details of all the three appeals are given herein below: Appeal No. Period Amount Penalty u/r 15(1) of CCR E/21071/2018 May 2008 Rs.4,62,909/- Rs.4,62,909/- E/21072/2018 April 2009 to September 2009 Rs.1,65,621/- Rs.1,65,621/- E/21073/2018 January to March 2009 Rs.1,93,639/- Rs.1,93,639/- 3. Briefly the facts of the present case are that the appellants are engaged in the manufacture of sponge iron under Chapter 72 of CETA, 1985. On scrutiny of ER-1 returns for various months by the Range Officer, it was noticed that the appellants have taken CENVAT credit of Rs. 4,62,909/- ....

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....edded to earth are not sustainable in law. He further submitted that both the authorities have ignored the fact that the usage of the impugned goods are already stated in the show-cause notice and in spite of that they have rejected the claim of the appellant on the ground that the appellant has failed to prove the usage of these items for fabrication of structure. He further submitted that the specific ground for disallowance was that the support structure for kiln plants, which are embedded to the earth have become immovable property and thereby, falls outside the scope of 'Capital Goods' under Rule 2(a) of the CENVAT credit Rules, 2004. He further submitted that the nature of use of inputs is admitted in the show-cause notice and there w....

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.... the said kiln which are 'Capital Goods'. The learned counsel also referred to the definition of 'Capital Goods' in Rule 2(a)(A)(iii) of CENVAT Credit Rules, 2004 and also referred to the Circular No.964/07/2012 dated 2.4.2012. 5.3 Learned counsel also submitted that various Benches of the Tribunal and the High Courts have consistently been taking the stand that MS plates, MS angles, channel, HR sheets used for fabrication of structure to support various machines like kiln, conveyor systems, demineralization plant, etc., are eligible for CENVAT credit. For this, he relied upon the following decision: • CCE, Bilaspur vs. Singhal Enterprises Pvt. Ltd.: 2018 (359) ELT 313 (Chhattisgarh) • Thiru Aroran Sugars Ltd. v....