2018 (3) TMI 606 – CESTAT CHENNAI – TMI – CENVAT credit – MS plates, sheets, beams, angles etc. used in structural construction of factory buildings, workshop, work shed etc. and also for structural supports of pipelines and storage tank – Held that: – The Tribunal in the appellant’s own case M/s. Chemplast Sanmar Ltd. Versus Commissioner, LTU, Chennai [2018 (2) TMI 4 – CESTAT CHENNAI] for a period prior to 7.7.2009 which analyzed the very same issue held that when the MS items are used for structural support of capital goods applying the user test evolved by the Hon’ble Supreme court in the case of Rajasthan Spinning and Weaving Mills Ltd. [2010 (7) TMI 12 – SUPREME COURT OF INDIA], observed that pipelines cannot be made functional without properly securing them and these structural supports are integral part of such plant and machinery.
–
The disallowance of credit is unjustified – appeal allowed – decided in favor of appellant. – E/Misc./41823/2017 & E/341/2011 – A/40235/2018 –
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
penalties. In reply, the appellant submitted that they have not availed CENVAT credit on MS items used for civil constructions or buildings or platforms. That the CENVAT credit has been availed only on structural on which the tanks and vessels are mounted without which tanks/vessels cannot be put to use. After due process of law, the original authority confirmed the demand, interest and imposed penalty. Hence this appeal. 2. On behalf of the appellant, the ld. counsel Shri V.S. Manoj adverted to the reply issued by the appellant to the show cause notice. He asserted that the appellant has not availed credit on the MS items used for concrete platforms and civil structures. No credit was availed on the elevated structures, platforms etc. The CENVAT credit has been availed by the appellant under the category of capital goods on MS items which were used as structural support for the tanks and pipelines. The tanks have to be placed at various heights and the raw material which is in liquid
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
amp; 42923/2017 dated 15.11.2017. 3. The ld. AR Shri A. Cletus reiterated the findings in the impugned order. 4. Heard both sides. 5. We find that the disputed period is December 2006 to December 2008. In para 17, the Commissioner has discussed the eligibility of credit on the MS items and held that since the steel structures are embedded to the earth after fabrication, they become immovable property and are not eligible for credit. He has placed much reliance on the decision in the case of Vandana Global Ltd. (supra). The counsel for appellant has produced the photographs to substantiate his contention that MS items were used only as support structures for the vessel/tanks and also for the pipelines which carried the raw materials etc. On perusal of the photographs, we find that the submission made by the ld. counsel is not without merit. The Tribunal in the appellant s own case for a period prior to 7.7.2009 which analyzed the very same issue held that when the MS items are used for
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =