2018 (6) TMI 733 – CESTAT CHENNAI – TMI – CENVAT credit – whether the MS angles, MS channels, HR coils etc. used for support structures and fabrication of worn out molasses tank, operational platform is eligible for credit? – Held that:- The respondent is engaged in manufacturer of final products and there is very close nexus with the inputs (MS channels etc.) as they were used for fabrication of support structures for the reason that without such support structures the manufacturing activity cannot be carried out as they become integral part of the machineries after fabrication – In the case of Thiru Arooran Sugars [2017 (7) TMI 524 – MADRAS HIGH COURT], the Hon’ble High Court has considered the very same issue and held that credit is eligible – appeal dismissed – decided against Revenue. – E/Misc./41936 & 42002/2017 and E/341 & 342/2012 – Final Order No. 41410-41411/2018 – Dated:- 1-5-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical)
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rication / repair of molasses tank, items used for fabrication of worn out parts of operational platform were disallowed confirming the demand and imposed penalties. In appeal, Commissioner (Appeals) allowed the credit against which the department is now before the Tribunal. 2. On behalf of Revenue, ld. AR Shri S. Govindarajan supported the grounds of appeal. In addition, he relied upon the decision of the Larger Bench of the Tribunal in the case of Tower Vision India Pvt. Ltd. Vs. Commissioner of Central Excise, Delhi – 2016 (42) STR 249 (Tri.- LB) and submitted that in the said case it was held that when MS angles, channels etc. are used for fabrication and setting up of towers, these items are not eligible for credit for the reason that after fabrication, they are attached to the earth and become immovable property. 3. On behalf of the respondent, ld. counsel Ms. Cynduja Crishnan submitted that the period involved is prior to 7.7.2009. The definition of inputs was amended to include
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
her, in the recent decision, in the case of Thiru Arooran Sugars (supra), the Hon ble High Court has considered the very same issue and held that credit is eligible. The High Court in the said judgment has referred and taken note of the decision of the Larger Bench of the Tribunal in Vandana Global Ltd. – 2010 (253) ELT 440 (Tri. LB). In the case of Vandana Global Ltd., it held that after fabrication when the goods are attached to earth, they become immovable property and therefore credit is not eligible. Arguing on the same line, the ld. AR has relied upon Tower Vision India Pvt. Ltd. (supra). The decision rendered in Tower Vision India Pvt. Ltd. was with regard to inputs used for providing output services. In the present case, the respondent is engaged in manufacturer of final products and there is very close nexus with the inputs (MS channels etc.) as they were used for fabrication of support structures for the reason that without such support structures the manufacturing activity c
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =