2022 (1) TMI 907

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....ssued seeking recovery of the credit and 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 cover....

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.... l. India Cements Ltd.- 2014 (310) ELT 636 (Mad) m. India Cements Ltd - 2015 (321) ELT 209 (Mad) n. Jawahar Mills Ltd.- 2001 (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-STREN....

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....ods which are used in the manufacture of capital goods which are further used in the factory of production. They stated that all these conditions are satisfied. Therefore they should be entitled for Cenvat credit. 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 an....

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....at credit for the duty paid on capital goods. But when such capital goods or exempted or not dutiable, then the inputs would get the credit by virtue of Explanation 2 to Rule 2(k). For clarity, we are reproducing 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....