2008 (2) TMI 234

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.... set up a third plant and procured capital goods during the periods 10/95 to 12/95 and 2/96 to 7/96 for the purpose. Vide order in Appeal No. 110/2000, the Commissioner (Appeals) affirmed the order of the jurisdictional Assistant Commissioner denying credit of duty paid on Heat Transfer Salt (HTS), CTD bars, angles, channels, beams, joists and HR plates and reduced the penalty imposed on TCL from Rs. One lakh to Rs.75,000/-. The Commissioner (Appeals) denied credit on HTS being refractory materials not eligible for credit during the material time.  Credit was denied on iron and steel goods for the reason that they were building materials.  2. In the appeal filed by the Revenue (E/1347/2000), the revenue has prayed for vacating ....

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.... terms of clause (d) of Explanation 1 to Rule 57Q (1), components of a plant falling under CSH 84.19 was eligible for capital goods credit. As regards the iron and steel goods such as angles, joists, channels, CTD bars etc., it is seen from the records that these items are parts of the plant in view of the ratio of the decision in Jawahar Mills Ltd. (supra).  Steel angles, channels and beams support various equipments in the assessee's plant. These are structurals used to support intermediate vessels and/or goods used in the fabrication of various equipment forming parts of the plant. MS sheets and SS Sheet coils are used in fabricating reactors, tanks etc. which are also parts of the plant. Therefore, the impugned iron and steel items....