TaxTMI 
TaxTMI 
2022 (9) TMI 797
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....he final products. It was noticed that the appellant has availed CENVAT credit on MS sheets, SS sheets and zinc sheets which were used for fabrication of a new paint plant in their premises. The department was of the opinion that the credit availed on such items under the category of capital goods is not eligible. Show Cause Notice was issued for the period 28.1.2008 to 30.7.2008 proposing to disallow the credit availed on these items as capital goods and also to recover the same along with interest and to impose penalty. After due process of law, the original authority confirmed the demand along with interest and impose penalties. On appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, le....
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....are used for fabricating structures, the learned counsel submitted that the paint plant is an important and integral part in the process of manufacture of finished products. The wheel rims which are used in automobile industry has to withstand all weather conditions. For this purpose, they have to use advanced technologies of painting and the finished product is ready for clearance only after subjecting to the process of painting. 4. He adverted to the discussions made by the Commissioner (Appeals) in para 5 of the impugned order. The Commissioner (Appeals) has erred in relying upon the decision of the Hon'ble High Court of Allahabad in the case of Upper Ganges and Sugar Industries Ltd. Vs. CCE, Meerut - II reported in 2013 (293) ELT....
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....e is whether the credit availed on structural items in the nature of MS sheets, angles etc. are eligible for credit. The authorities below have mainly relied upon the decision of the Tribunal in Vandana Global Ltd. (supra) wherein the Larger Bench held that the amendment brought forth in the definition of capital goods with effect from 7.7.2009 is retrospectively applicable. The said decision has been set aside by the Hon'ble High Court of Chhattisgarh as stated above. The Commissioner (Appeals) has relied upon the decision of the Hon'ble High Court of Allahabad which actually analysis the definition of capital goods under the erstwhile MODVAT credit rules. The said definition is not applicable after 2004 and so the reliance placed ....
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....rusher, kiln, hoopers, etc., and that without these structurals, the machinery could not be erected and would not function. 10. In the case of Commissioner of Central Excise, Jaipur v. Rajasthan Spinning & Weaving Mills Ltd., reported in 2010 (255) E.L.T. 481, relied on by the learned counsel appearing for the assessee, the Apex Court, while dealing with the issue in question, in Paragraph Nos. 7 and 8, held as follows : "7. In the present case, it is seen that the items in question were used in the erection of various machineries such as, - new additional Electrostatic Precipitator for raw mill project, additional fly ash handling system, MMD crusher etc. for the Dry Process Cement Manufacturing Plant. It is evident that ....