AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 953
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....lant as well as for keeping the machineries in good workable condition, the appellant used the items in question as capital goods/inputs for manufacture of capital goods, which was in turn used for manufacture of their final products. 3. The manufacturing divisions namely, Ore Handling Plant, Coke Ovens, Coal Chemical Department, Sintering Plant, Blast Furnaces, Slag Granulation Plant, Steel Melting Shop-I, Steel Melting Shop-II, were installed to facilitate manufacture of Iron and Steel items at their premises. Further, in the workshops, namely, Roll Turning Shop, Refractory Material Plant I & II, Research and Control Laboratory, Foundry and Pattern Shop, Forge Shop, Machine Shops, Steel Structural Shop, TPL Workshop etc., were installed. the Appellant manufactured a number of machinery/parts/components/ accessories for use in the plant to complete the manufacturing activity. 4. The appellant cleared their final product on payment of duty and availed Cenvat Credit on the inputs and capital goods used in the manufacture of the final product. For the period 10 June 1994 to 31 May 1995, fourteen show cause notices were issued to the appellant for the period April 1994 to December 1....
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....Cenvat Credit on all the above items. 7. She further submitted that as per Rule 57A of Central Excise Rules and as per explanation to rule 2g/2k of the Cenvat Credit rules, input includes goods used in manufacture of capital goods which were further used in the factory of manufacturer. Since the impugned goods have been used to manufacture parts / accessories / components of various capital goods which were used within the factory of manufacturer, in terms of the said explanation, Cenvat Credit would have been admissible on iron and steel items used in fabrication of such capital goods. It is further submitted that the steel is to be considered as used in or in relation to manufacture of dutiable products since without use of such steel, activity of manufacturing could not have been undertaken. Since the impugned items have been used for fabrication of various parts / components of specified capital goods, hence the appellant is entitled to avail Cenvat Credit. 8. She further submits that the definition contains an "inclusive‟ part, which only further widens the scope and meaning of the term "input, therefore, the appellant is entitled to the benefit of credit on the above ....
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....for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products; b) components, spare parts and accessories of the aforesaid machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose; and, c) moulds and dies, generating sets and weigh bridges used in the factory of the manufacturer. 14. The observations in the impugned order by the learned commissioner is that the items claimed to be capital goods by the appellant are not capital goods in terms of Rule 57Q of the Central Excise Rules 1994. 15. The issue is therefore, that all the items in question are for entitlement of cenvat credit in terms of rule 57Q of central excise rules can be called as capital goods or not. The same are discussed as under:- (I) Air Cooler, Air conditioner, Ventilation systems, water cooler: Learned commissioner denied the Cenvat credit on the ground that these are not integrally connected in the production and processing of the goods. These items have been used in plant to be provided desired environment than in production in the factory. We find that air conditioner have been used in the control....
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....hat the appellant has established a case on merits and that credit is admissible on MBC sleepers." In view of the above, we hold that the said bull dozers and excavators are integral part of the plant and machinery. Therefore, appellant is entitled to apply for Cenvat Credit. (III) Electric Tele communication signals, telephone push bottons, telecom A.V. Aids, Video Amplifier Cord, telecom parts, telephone cables and telecom cords: The said items were used by the appellant in the factory but it is alleged that they were not used for producing or processing any goods or bring about change in the final product. Therefore, Cenvat Credit was denied. We find that the items in question were used in control system and various production shops like blast furnace, steel melting shop, blooming and billet mills, etc. for communicating transfer of raw material and intermediate goods to the next process and also for communicating the production process data to the next stage users so that production process be carried on without interruption for manufacturing of final product. In view of this, we hold that the said items in question have been integrally used by the appellant for the manufac....
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....hting fittings are essential as they illuminate the factory area in order to maintain continuity in manufacturing process round the clock without any hindrance, especially in darkness when natural light is not sufficient and also not available at night, in various areas of the plant. Therefore, said lighting fittings are essentially a pre-requisite for manufacture of goods therefore, entitled to Cenvat Credit in terms of Rule 57Q and Rule 57A of Central Excise Rules. (VII) Amonia Plaper/ photo chemical/ ammonia printing machine/ photocopying apparatus It is alleged that these items were used in preparation of drawing and designing and thus does not find its use in production or processing. We find that ammonia paper is used for preparation of drawing and designing of final products and blue prints of various spare, components etc. which are manufactured in the various workshops within the factory of the appellant, without which the manufacture of goods is hindered. Hence, by applying the user-test principle, the said item qualify as capital goods under rule 57Q of the Excise Rules. (VIII) Monoblock Concrete Sleepers and body crossing etc. The monoblock concrete sleepers, concr....
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....We find that items have been used as material handling equipment for storing / mixing /transporting the raw material in ore handling plant, sintering plant, coal handling plant, steel melting shop and other workshops. Further, without the internal transport of raw material, manufacture cannot take place, hence, is entitled to avail Cenvat Credit on the above said items. (XI) Motor Vehicle parts Cenvat Credit sought to be denied on the grounds that these parts are meant for general transportation of vehicle and does not fall under Rule 57Q. We find that these items are used as part of ingot metal, bogie cars and fork lift trucks which are used for transportation of various raw materials within the factory and is integrally and essentially connected with manufacture of final products. Hence, qualify as capital goods under Rule 57Q. Therefore, the appellant is entitled to avail cenvat credit on the above items. (XII) Diesel oil engine Cenvat Credit sought to be denied on the grounds that although the said item is used in water treatment plant of the appellant, it is not a specified capital goods item. We find that the diesel oil engine is used in various places like water treatm....