2019 (5) TMI 654

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.... in the manufacture of sugar and molasses and is availing the credit of duty paid on inputs, capital goods and input services under the provisions of CCR, 2004. During the verification / scrutiny of monthly ER-1 returns for the period from September 2015 to March 2016, it was noticed that the assessee has wrongly availed and utilized CENVAT credit to the tune of Rs. 39,25,612/- on goods viz. HR coils, MS angles, MS channels, MS plates, MS flats etc. falling under Chapter 72 of CETA, 1985 treating them as capital goods. It is noticed that the above mentioned items were used by them for construction of civil structures, expansion & modernization, fabrication of supporting structures for plant / machineries / equipment / appliances which are f....

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....nd arbitrary. He further submitted that the credit of Rs. 4,36,511/- availed on the steel material falling under Chapter 72 cannot be denied being used for repair / maintenance / fabrication of eligible capital goods. In support of this submission, he relied upon the following decisions:- i. Singhal Enterprises Pvt. Ltd. Vs. CCE [2016(341) ELT 372 (affirmed by High Court as reported in 2018(359) ELT 313] ii. CCE Vs. Millenium Starch India Pvt. Ltd. 2018(3) TMI 914] iii. Gemini Graphics Pvt. Ltd. Vs. CCE [2018(10) TMI 1468] iv. CCE Vs. Sanghi Industries Ltd. [2018(5) TMI 1507] v. CCE Vs. Almac Enterprises [2018(5) TMI 1523] vi. Hindustant Copper Ltd. Vs. CCE [2016(10) TMI 1183] vii. Kisan Sah Chinni Mills Ltd. Vs. CCE [2....

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.... remanded the matter back to the original authority and should have allowed the appeal of the appellant. He further submitted that the CENVAT credit of Rs. 26,27,670/- availed on the goods falling under Chapters 84, 85, 90 and the credit of Rs. 2,33,571/- availed on the pipes / tubes and fittings thereof are not deniable being specifically covered under the definition of capital goods. He further submitted that the credit of Rs. 73,506/- availed on Nickel screen falling under Chapter 75 is not deniable being used as component in centrifugal machine and for this submission, he relied upon the decision in the case of Simbholi Sugar Mills Ltd. Vs. CCE [2004(177) ELT 161]. Further he submitted that the credit of Rs. 3,38,327/- availed on variou....

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....dmissibility of credit on various items but remanded the case back to the original authority for verification of the usage even after certificate from Chartered Engineer was submitted by the appellant. Further I find that most of the impugned goods have been covered in the definition of inputs and have been used for repair and maintenance / fabrication of capital goods. The various decisions relied upon by the appellant cited supra have held the eligibility of the assessee for CENVAT credit for various goods which have been used for manufacturing of final product. Further I find that the credit of Rs. 26,27,670/- have been availed on the goods falling under Chapters 84, 85, and 90 which are specifically covered in the definition of capital ....