2025 (7) TMI 340

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....on of storage tank'. 2. The facts of the case are that the appellant is engaged in providing storage and warehousing and operation and maintenance services to M/s. Indian Oil Corporation Limited (IOCL) at Paradeep Refinery Project, Paradeep, Odisha. 3. The appellant had entered into an contract with M/s. IOCL for undertaking installation, operation and maintenance of crude and finished products, tankage facilities on BOOT basis at Paradeep Refinery Project. To render such services, the appellant undertook the construction of tankage facilities. The appellant was receiving fixed monthly charges towards operation of the tankage facility and return of the fixed capital investment as also monthly variable charges towards maintenance o....

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.... by the appellant of the Service Tax paid on the storage tank construction services. 8. The matter was adjudicated and by way of the impugned order, the demand was confirmed by denying the CENVAT Credit, along with interest; penalty was also imposed. 9. Aggrieved from the said order, the appellant is before us. 10. The Ld. Counsel appearing on behalf of the appellant submits that the issue is no longer res integra as it has been held that storage tanks are 'capital goods' and the appellant would therefore be eligible to avail CENVAT Credit on input services used for fabrication and installation of the same, which has been decided by this Tribunal in the case of Vedanta Aluminium Ltd. v. Commissioner of C.Ex. & S.T., Bhubane....

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....in the case of SLR Steels Ltd. (Supra) held as under: "Therefore, the notification of the Legislature is very clear tht it is only the "inputs" used in the manufacture or construction of capital goods which is construed as input and cenvat credit is available on the duty paid in purchase of such inputs. If the cement, angles channels, Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (T.M.T) and other items are used in the construction of factory shed, building or laying of foundation, the duty paid on such items the assessee is entitled to cenvat credit. Similarly, though the assessee is entitled to cenvat credit of cement and steel used in the manufacture of capital goods viz., storage tank, if any structur....