2019 (9) TMI 1378

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....d interest. 2. Briefly stated the facts of the case are that the Appellant is a composite Sugar factory operating under the Cenvat Credit Scheme. The Appellant had installed a distillery division within the said factory premises which commenced production in June 2008. The various sub-plants, machineries and materials required for installation of the distillery unit were sourced from M/s. Praj Industries Limited and the erection/commissioning were carried out by M/s. Peackon Industries Limited. The Appellant had availed Cenvat credit of Rs. 52,15,642/- as capital goods on HR Coil, HR Plate, MS Bar, MS Flat, MS Angle etc. (in short structural items) used for installation/commissioning of the distillery division and for repairs and mainten....

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....Ambuja Cement Eastern Ltd. - 2017 (357) ELT 55 (refer para 7 to 9); Further, such items also qualified as capital goods by applying the user test evolved by the Hon'ble Supreme Court in Jawahar Mills Case, re-iterated in Rajasthan Spinning Case and followed by the Hon'ble Madras High court in India Cements reported in 2014 (310) ELT636. B. The structural items, involving credit of Rs. 43,66,551 in the instant case were used for fabrication of tanks (fermentation/storage) and pollution control equipments within the distillery division as evident from the certificate dated 2 November 2011 issued by the Chartered Engineer, M.G. Bhat & Associates. The adjudicating authority could not have questioned the domain knowledge and wi....

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....en in August 2008 and April 2009 whereas the distillery division stood installed in February/March 2008 and therefore, the structural items were not used in the fabrication of tanks. The invoice from the suppliers of the structural items pertains to the period 2007-08 as evident from the sample invoices enclosed as part of the Paper Book [refer Page 15 to 22 of index] and no provision in law that credit unless taken simultaneously with receipt of inputs is lost [Refer Page 118 of Index]. 12 Structural items were used for general purposes like support structure, platform etc. as evident from photographs, it cannot be concluded that the equipments manufactured were out of disputed structural items within the disputed period. Credi....

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....ital goods are manufactured within the factory of production through a contractor, the manufacturer of final product is entitled to credit on the inputs used in the manufacture of such capital goods. [Refer - International Tractor Ltd - 2007 (220) ELT 155; & International Tractors Ltd. - 2010 (255) ELT 196] E. Lastly, the confirmation of demand has also been challenged on the ground of being hit by limitation as the credit taken was duly disclosed in the ER-1 returns by inviting our attention to the following decisions: • Diamond Power Infrastructure - 2016 (44) STR J60 (Guj HC) • Ultratech Cement - 2017 (347) ELT 3 (Chattisgarh HC) 5. The learned Authorized Representative appearing on behalf of the Res....