TaxTMI 
TaxTMI 
2026 (7) TMI 526
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....as issued. The Commissioner in the impugned order observing that the aluminium panels are pre-designed panels to form shape of a civil structure, held them to be 'mould' and allowed cenvat credit on them. Aggrieved by this order, the Revenue is in appeal. 3. The Revenue in their grounds of appeal referring to the definition of 'Capital Goods' stated that the aluminium system/panels cannot be considered as capital goods in the form of mould in view of the fact that their classification is under Chapter Heading 7610 9090 which are excluded from the definition of capital goods. It is further submitted that the aluminium panels which are used in the construction activity can only be considered as inputs and the rules specifically bar the respondent from availing cenvat credit on these inputs which are used for payment of service tax on works contract services. It is also submitted that the Commissioner was wrong in allowing the cenvat credit based on the functional use of the panels in the construction building without looking into the actual description of the goods. 4. The learned Authorised Representative (AR) reiterating the above submissions submitted that at the time of imp....
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....ed : 7610 90 21 ---- Portable bridge 7610 90 29 ---- Other 7610 90 30 --- Aluminium plates, rods, profiles, tubes and the like, prepared for use in structure 7610 90 90 --- Other 8480 Bases; Moulding Patterns; Moulds for Metal (other than ingot Moulds), Metal Carbides, Glass, Mineral Materials, Rubber or Plastics 8480 10 00 - Moulding boxes for metal foundry 8480 20 00 - Mould 8480 30 00 - Moulding patterns - - Moulds for metal or metal carbides 8480 41 00 -- Injection or compression types 8480 49 00 -- Other 8480 50 00 - Moulds for glass 8480 60 00 - Moulds for mineral materials - Moulds for rubber or plastics : 8480 71 00 -- Injection or compression types 8480 79 00 -- Other 5.1. As per the HSN Explanatory Notes, the essential function of a mould is to retain the material in a predetermined shape while it sets; some moulds also exert a certain pressure on the material. It also clarifies that the Chapter Heading 8480 includes "Moulds for moulding concrete, cement or asbestos-cement goods (tubes, vats, paving stones, flags, chimney-pots, bannisters, architectural ornaments, wall, floo....
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....he impugned order, the Commissioner observes that the aluminium formwork is classified under CTH 7610 9090 as per the Bill of Entry available on record. He also observes that when these panels are put together would be in the shape of desired civil structure and thus, the mould is formed only after the importation of the aluminium panels. Cenvat credit is on the products that are imported and not based on the resultant product at the premises of the respondent. Therefore, the Commissioner was not justified in extending the cenvat credit on the inputs which are categorically ineligible as per the Cenvat Credit Rules, 2004. 6. The Supreme Court in the case of Pioneer Embroideries Ltd. Versus Commissioner of Customs, Mumbai: 2015 (322) E.L.T. 602 (S.C.) dated 22-7-2015 observed as follows: "5. It was argued by Mr. Vikram S. Nankani, learned senior counsel appearing for the appellant, that the two sets of machines were imported with the intention to make the mechanised machines as computerised and they were presented as such and thus, the case would be covered by GIR 2(a). This aspect has been simply dealt with by the CESTAT, in the impugned judgment, in the following words....
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....he heading is an eo nomine term with no statutory definition, and based on the common or trade parlance test, the Court concludes that the common or commercial meaning of the good includes 'use' or 'adaptation' of the good as a defining aspect of its identity. c. Unless statutory intention to the contrary is proven, an importer cannot classify goods based on the actual use to which the goods are put. d. If the importer wishes to classify goods based on their 'intended use', then the following conditions must be fulfilled: i. First, the tariff heading under which the importer seeks to classify should allow consideration of 'use' as a relevant factor; ii. Secondly, if such a tariff heading allows for consideration of 'use', the 'use' mentioned in the tariff heading and the 'intended use' claimed by the importer must be consistent. iii. Lastly, the intended use as claimed by the importer: 1. should be inherent in the goods in question and should be discernible from their objective characteristics and properties, which include, among other things, factors such as function, design and composition; and 2. should conform to th....
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....ent that the subject goods fulfil the characteristics and unquestionably fall within the category of structures. To further substantiate, we have no doubt that even in common parlance, the subject goods would be referred to as structures. Therefore, the subject goods are classifiable under CTI 76109010 as Aluminium Structures.--- xxx "F. Conclusion 148. A classification dispute in the context of imported goods arises when the revenue and the importer disagree on the tariff heading or sub-heading under which the imported goods ought to be classified. In such scenarios, the tribunals and courts are tasked with determining the most appropriate heading/sub-heading for the purposes of customs law classification. When undertaking this exercise of determining the most appropriate heading, the tribunals and courts are bound by the GRIs, which are provided for in the First Schedule to the Act, 1975 and ought to be applied sequentially. The GRI 1 forms the basis for classifying goods under the First Schedule of the Act, 1975, and establishes the primacy of the notes and terms of headings in determining classification. Thus, any customs law classification dispute at....