2018 (5) TMI 1763 – CESTAT CHENNAI – TMI – CENVAT Credit – capital goods – MS Plates, MS checkered plates, MS sheets, MS channels, HR steel coils etc. – Held that:- The impugned items in the present appeal were used for fabrication of storage tank. The appellants are engaged in manufacture of denatured ethyl alcohol and such storage tanks are an indispensable item in the manufacturing activity. Without such activity of fabrication using the MS plates, MS sheets, HR coils etc. the storage tank cannot be installed within the factory at the required height to be used in the process of manufacture.
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The Larger Bench of the Tribunal in the case of Commissioner of Central Excise, Meerut Vs. Modi Rubber Ltd. [2000 (5) TMI 64 – CEGAT, NEW DEL
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, MS checkered plates, MS sheets, MS channels, HR steel coils etc. It appeared to the department that these goods do not fall within the capital goods and therefore the appellants are not eligible for credit. Show cause notice was issued proposing to demand the wrongly availed credit along with interest as well as for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties, which was upheld by the Commissioner (Appeals). 2. On behalf of the appellant, ld. counsel Ms. Nandita Das submitted that the MS sheets, MS angles etc. were used for fabrication of storage tanks. Such tanks are an indispensable part / capital goods in the manufacturing process. The welding electrodes were
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dated 29.1.2018 in the appellant s own case as well as in Final Order No. 42922 & 42923/2017 dated 15.11.2017 had held the issue in favour of the appellant for different periods. She pleaded that the appeal may be allowed. 3. The ld. AR Shri R.Subramaniam supported the findings in the impugned order. 4. Heard both sides. 5. The issue is whether the MS plates, MS sheets, HR coils etc. are eligible for credit. The Larger Bench of the Tribunal in the case of Commissioner of Central Excise, Meerut Vs. Modi Rubber Ltd. – 2000 (119) ELT 197 (Tri. LB) has held that if the appellants are eligible for credit either under capital goods or inputs, the credit has to be allowed. The impugned items in the present appeal were used for fabrication of
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