2018 (9) TMI 1655 – CESTAT CHENNAI – TMI – CENVAT Credit – inputs – HR coil, steel plates, MS channel, MS plates etc. for the construction of three storage tanks of 3600 MT each in capacity which are used for storing crude palm oil, palm oil and palmolein oil – Whether the appellants are eligible for credit on the impugned steel items which were used for fabrication of storage tanks used for storing refined palm oil, crude palm oil?
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Held that:- The said issue has been considered in the case of Thiru Arooran Sugars [2017 (7) TMI 524 – MADRAS HIGH COURT], where the Hon’ble High Court of Madras has held that the credit on such items used for manufacture of capital goods is eligible – credit allowed – appeal allowed – decided in favor of
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l. Department was of the view that the said items do not fit into the definition of inputs and therefore are not eligible for credit. Show cause notice was issued for the period August 2008 to January 2009 proposing to disallow CENVAT credit of ₹ 21,34,709/- availed on MS sheets, steel plates, MS angles etc. After due process of law, the original authority confirmed the demand, interest and also imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri Hari Radhakrishnan submitted that the appellant had used the impugned steel items for fabrication of storage tanks at site. The storage tanks so manufactured is mentioned as capital goods in definition of CEN
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ttached to the earth and being immovable property are non-excisable. Therefore, the credit is not eligible on such steel items. 4. Heard both sides. 5. The issue is whether the appellants are eligible for credit on the impugned steel items which were used for fabrication of storage tanks used for storing refined palm oil, crude palm oil. The said issue has been considered in various decisions and in the case of Thiru Arooran Sugars (supra), the Hon ble High Court of Madras has held that the credit on such items used for manufacture of capital goods is eligible. The decision in Vandana Global (supra) was also referred to by the Hon ble High Court. Following the said decision, we are of the view that the disallowance of credit is unjustified
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