2023 (11) TMI 366

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....it of Rs. 3,27,01,642/-, for the period from 11th July 2013, and of Rs.1,02,72,677/-, for the period from April 2012 to January 2013, proposed for recovery under rule 14 of CENVAT Credit Rules, 2004, along with applicable interest thereon, and imposition of penalty of like amount under rule 15 of CENVAT Credit Rules, 2004 in separate show cause notices were confirmed, challenges the finding of ineligibility of certain goods procured by them that were claimed to conform to 'inputs' in rule 2(k) of CENVAT Credit Rules, 2004. The claim of the appellant is that these goods were used in the setting up of 'lube oil upgradation plant', 'diesel hydro treatment plant' and similar projects which are of capital nature and, therefore, entitled to avail....

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....ismissing the appeal of the assessee. It is also submitted that 'inputs', as defined, permitted availment of credit of duties discharged on goods utilized for creation of capital goods at site that were intended to be used in manufacture and that the utilization by the appellant herein did not confirm thereof. 4. In terms of CENVAT Credit Rules, 2004, besides allowing the availment of duties discharged on procurement of 'capital goods' towards credit, other goods that finally found deployment in 'capital goods' were entitled for coverage as 'inputs' in accordance with rule 2(k) of CENVATA Credit Rules, 2004. The definition of 'inputs' underwent change twice. On the first occasion 'but shall not include cement, angles, channels, ....

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....ed to in the impugned order is not an acceptable substituted authority. Accordingly, the restriction on inputs used in 'capital goods' would be effective only from 7th July 2009. 6. It appears from the records that there has been a summary finding by the adjudicating authority on the deployment of the impugned materials. For determining eligibility for availment of credit, it is important to note in context that these projects are 'turn-key projects' and that the utilization of such materials in the process of setting up such facilities on site would be intrinsic to the manufacture of capital goods. There was no evidence adduced to establish that these materials were used only for providing such structures for support of capital goods. I....