TaxTMI 
TaxTMI 
2024 (2) TMI 1156
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....ve set up a green field project in Bharuch for manufacture of multiple products from Copper concentrate. During 2003 to 2005 the Appellants expanded the factory by installing additional machinery such as smelter, coal handling plant, Sulphuric acid plant etc. Such expanded portion of the factory was referred to as Copper III plant. The Appellants placed work orders on contractors for setting up of the Copper III plant. The Appellants inter alia purchased duty paid H.R. M.S. and S.S. plates for use by the contractor. The H.R. M.S. and S.S. plates were mainly used by the contractor in the fabrication of the following items in the factory of the Appellants: (i) Chimney (ii) Ducts (iii) Machinery (iv) Pipes (v) Support structures of capital goods (vi) Storage tanks Apart from the above, a small quantity of H.R. M.S. and S.S. plates was also used in fabrication of civil structures within the factory. 3.1 The Appellants during the period 2003 to 2005 consumed a total of 16270.59 MT of H.R. M.S. and S.S. plates for setting up of the Copper III plant. Out of the total quantity of H.R. M.S. and S.S. plates purchased, the Appellants....
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....eeds consideration by First Appellate Authority." (Emphasis supplied) Thus, the matter was remanded with a specific observation that adjudicating authority has not appreciated Chartered Engineers certificate in its correct perspective and therefore matters needs reconsideration. 3.3 Ld Counsel pointed out that In de-novo proceedings, Ld. Commissioner in the impugned order has confirmed the demand and imposed equal penalty on the ground that: (i) Credit has not been availed within a reasonable period of time under Rule 4 of Cenvat Credit Rules, 2002/2004. (ii) HR/MS Plates etc. have been used in the manufacturing of immovable structure and therefore they are not used for manufacturing 'goods' and same are not capital goods so as to qualify for credit as inputs. In this regard reliance has been placed on Order No. 58/1/2002-CX dated 15.01.2002 issued by the Board from F. No. 154/26/99-CX4. (iii) That the storage tanks, though not embedded in the earth, are erected at site stage by stage and after completion they cannot be physically moved. On disposal, they have to be necessarily dismantled and sold as metal sheet/scrap. It is not pos....
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....Lucknow Vs DSCL, Sugar, Rupapur District Harodi, U. - 2019 (367) ELT 836 (All.) (xx) Tamilnadu Newsprint & Papers Ltd. Vs Commissioner of Central Excise - 2021 (3) TMI 179 (Mad.) (xxi) The Commissioner of Central Excise Vs Madras Cements Ltd. 2019 (367) ELT 817 (Mad,) (xxii) Dalmia Cements (Bharat) Ltd. Vs CESTAT, Chennai - 2016 (341) E.L.T. 102 (Mad.) (xxiii) Commr. Of C.Ex., Visakhapatnam-II Vs Sai Sahmita Storages (P) Ltd. 2011 (270) E.L.T. 33 (A.P) (xxiv) SLR Steel Ltd. Vs Commissioner of C.Ex., Banglore-II 2010 (249) E.L.T. 394 (Tri-Bang.) (xxv) Commissioner of Central Excise, Banglore-II Vs SLR Steel Ltd. 2012 (280) E.L.T. 176 (Kar.) (xxvi) HNG Float Glass Ltd. v. CCE, Vadodara 2022 (12) TMI 132 CESTAT Ahmedabad (xxvii) SKF Technologies (1) Pvt. Ltd. v. CCE, Ahmedabad - 2018 (3) TMI 99- CESTAT Ahmedabad (xxviii) Ultratech Cement Ltd Vs CCE - 2023 (8) TMI 184-CESTAT Ahmedabad 4. The Ld. Commissioner in the impugned order observes that the steel plates were used in the fabrication of immovable items which cannot be called "capital goods" and thus the same cannot be treated as "inputs" in terms o....
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....s Rs.68,64,489/- Rs.12,434/- Grand Total Rs.2,63,25,622/- Rs.1,20,973/- This has not been disputed by revenue. 7.3 The definition of the term "inputs" as defined under Rule 2(k) of the Cenvat Credit Rules, 2004 during the relevant period is extracted below: "(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 of electricity or steam used in or in relation to the 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 as petrol and motor vehicles, used for providing any output service; Explanation 1-The light diesel oil, high speed diesel oil, motor spirit commonly known as petrol, shall....
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....ically covered under Rule 2(a) of the Cenvat Credit Rules, 2004. The Appellants had used HR, MS & SS plates used in the fabrication of plant and machinery like coal handling plant etc. The impugned order has disallowed such Cenvat credit on the ground that the plant and machinery so fabricated, are immovable and fixed to earth and cannot be called "capital goods". The Id. Commissioner observes that since the fabrication of such immovable plant and machinery cannot be called manufacture of capital goods, and therefore Cenvat credit availed on items used in such fabrication cannot be called "inputs". The Appellants submit that immovability is not a criteria relevant for determining whether Cenvat credit on goods used for manufacture of such plant and machinery is to be allowed or not. 7.7 We find that there is no restriction in Rule 2(k) of Cenvat Credit Rules, 2004, for the availment of the Cenvat credit of the duty paid on goods used for manufacture of capital goods. All that the said rule requires is whether such capital goods are used for manufacture of excisable goods in the factory. Once this requirement is satisfied, the fact that such capital goods came into existence as a....
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....said decision of the Hon'ble Karnataka High Court, allowing Cenvat credit for items used in the fabrication of immovable storage tank was followed by the Hon'ble Tribunal in the case of Metrochem Industries Ltd. v. CCE, Vadodara-1-2013 (292) ELT 578 (Tri. Ahmd.) and Grasim Industries Limited v. CCE, Jaipur - II-2015 (315) ELT 426 (Tri. Del). The same is squarely applicable to the Appellant's case. Thus, credit on this ground cannot be denied. 7.10 The Appellants have used MS and SS plates used in the fabrication of chimneys. Chimneys are pollution control equipment and are thus specified capital goods under sub-clause (ii) of clause (A) of the definition of "capital goods" under Rule 2(a) of the Cenvat Credit Rules, 2004. The Hon'ble Supreme Court in CCE, Jaipur v. Rajasthan Spinning & Weaving Mills Limited-2010 (255) ELT 481 (SC) has examined the issue of eligibility of Cenvat credit availed on MS plates items used in the fabrication of chimneys. The Hon'ble Supreme Court has held that, once it is not under dispute that the impugned items are used in the fabrication of chimneys, Cenvat credit availed on the same cannot be denied. Thus, ground in impugned ord....