2022 (1) TMI 907

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....imposition of penalty. The show cause notice dated was confirmed by the Commissioner, LTU, Mumbai, vide order dated 17/10/2011. The appellants are challenging the same by this appeal. 2. Learned Counsel for the appellant submits that they have utilized the steel in the construction of storage tanks and Chimney, in the Thermal Power Plant, classifiable as capital goods and therefore, have rightly claimed CENVAT Credit. He further submits that some of the items may be used as capital goods; however, if some items cannot be treated as capital goods, the same can be treated as inputs, if they use, in relation to the manufacture, of final product is established; the definition of input has a wide coverage and therefore, CENVAT Credit availed by....

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....001 (132) ELT 3 (SC) 4. Learned Authorized Representative appearing for the Department reiterates the findings of the OIO and relied upon the following judgments:- a. BSN Medical Pvt. Ltd. - 2012-TIOL-2203-CESTAT-MUM b. BHARTI AIRTEL LTD. - 2014 (35) S.T.R. 865 (Bom.) c. VODAFONE INDIA LTD. - 2015 (324) E.L.T. 434 (Bom.) d. TOWER VISION INDIA PVT. LTD.- 2016 (42) S.T.R. 249 (Tri. - LB) e. SARASWATI SUGAR MILLS- 2011 (270) E.L.T. 465 (S.C.) f. K.B. ROLLING MILLS (P) LTD.- 2014 (299) E.L.T. 466 (Tri. - Bang.) g. SREE RAYALASEEMA HI-STRENGTH HYPO LTD.- 2012 (278) E.L.T. 167 (A.P.) h. J.K. SYNTHETICS LTD.- 1995 (77) E.L.T. 142 (Tribunal) 5. Heard both sides and perused the records of the case 6. It is the case of the appellan....

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..... We find that the Revenue has denied the credit only on the ground that the capital goods, namely 'clinker silos' manufactured by them are not excisable. Therefore, no credit can be given to the  inputs. In our view, the approach of the Revenue is wrong. The credit can be given to the inputs, In our view, the approach of the Revenue is wrong. The point at issue is whether the Explanation 2 to Rule 2(k) is satisfied. The appellants have used Steel in order to fabricate silos. These silos are storage tanks. This is not denied and the storage tank is capital goods in terms of the definition of capital goods in the Cenvat Credit Rules. 2002. These facts are not in dispute. The only point is according to the Revenue this silos were immovab....

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.... the Rule 2 (k): Rule 2. Definitions (k) "input" means- I. All goods except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation o electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; II. All goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known....