TaxTMI 
TaxTMI 
2021 (4) TMI 848
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....ngaged in the manufacture of sugar, molasses and distillery products. During the course of verification of ER-1 returns, it was noticed that the appellant has taken CENVAT credit of Rs. 39,27,491/- on goods viz. HR coil, MS Angles, MS channels, MS plates, MS flats etc. falling under Chapter 72. These items are not eligible to avail CENVAT credit. Hence a show-cause notice dt. 23/04/2018 was issued for recovery of ineligible cenvat credit along with interest and proposal for imposition of penalty. The original authority vide Order-in-Original dt. 26/09/2018 confirmed the recovery of ineligible cenvat credit of Rs. 12,80,094/- along with interest and also imposed penalty of Rs. 1,28,009/-. Aggrieved by the Order-in-Original, the appellant fil....
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....f denial and recovery of the said credit. For this, he relied upon the following decisions:- a. Simbholi Sugar Mills Ltd. V/s. CCE, 2004 (177) ELT-161 b. Mansurpur Sugar Mills V/s. CCE, 2009 (239) ELT-174 4.3. He also submitted that the Chains (falling under CH.73) are used as components of the bagasse carrier, cane carrier, rack carrier etc. (all are falling under CH.84) material handling equipments used for movement of sugar cane/bagasse. As per the definition of capital goods given under Rule 2(a) of CCR, 2004, all the components/parts of the capital goods (falling under CH.84/85/90) are also eligible capital goods and hence there is no question of denial and recovery of the said credit. For this, he relied upon the ....
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....ate, the Chartered Engineer certified that the impugned goods during the relevant period have been used for repair/maintenance / modification / expantion of various machines / equipments of the sugar factory. He further submitted that all the items involved have been held to be parts and components of capital goods have been used for the repair and maintenance of the machineries. 5. On the other hand, the learned AR reiterated the findings of the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record, I find that for the period September 2015 to March, 2016, the cenvat credit on these disputed items were denied by the Department and this Tribunal vide its Final Order No.20401/201....
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....finition of capital goods as contained in Rule 2(a) of CCR, 2004. Further I find that Division Bench of this Tribunal in the case of Singhal Enterprises cited supra, in para 15 has held as under:- 15. We find that the controversy can be laid to rest by making a reference to the decision of the Apex Court in the case of CCE, Jaipur v. Rajasthan Spinning & Weaving Mills Ltd., 2010 (255) E.L.T. 481 (S.C.), wherein the Hon'ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The credit stands allowed in the light of Rule 57Q of the erstwhile Central Excise Rules, 1944. In the said judgment, the Apex Court has referred to the "user test" evolved....