Commissioner of Central Tax, Visakhapatnam-GST Versus Concast Ferro Inc
Central Excise
2018 (1) TMI 152 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 21-11-2017
E/COD/30581/2017, E/Cross/30328/2017 in E/31077/2017, E/30252/2017 – A/31880-31881/2017
Central Excise
Mr. M. V. Ravindran., Member (Judicial)
Shri Arun Kumar, Deputy Commissioner (AR) for the Appellant.
Shri Y. Sreenivasa Reddy, Advocate for the Respondent.
ORDER
[Order per: M. V. Ravindran]
This application is filed by the Revenue for condonation of delay in filing the supplementary appeals. Since this application No.E/COD/30581/2017 is for condoning the delay is supplementary appeal, the main appeal being filed in time, I condone the delay in filing the appeal by the Revenue.
2. By this common order, I propose to dispose of appeal No.E/31077/2017 and E/30252/2017. These two appeals are filed by the Revenue against the common Order-in-Appeal No.VIZ-EXCUS-001 APP-71-72-16-17 dated 29.11.2016
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appellant is eligible for credit in respect of goods i.e. Moulds in terms of definition in Rule 26a)(A)(iv) of CCR 2004, alloyed CENVAT credit of (Rs.1,43,389/- + Rs. 1,33,912/-) on Moulds under capital good; and in respect of goods i.e. Lancer Pipes Rs. 1,21,793/- under definition under Rule 2(k) of CCR 2004, admitted the credit as Inputs, by following the ruling of the case law CCE New Delhi Vs Haryana Concast Ltd., [2002 (148) ELT 905 (Tri.- Del.)]. I find there is no dispute from either parties to this extent, I do not find any valid reason to differ to the decision of lower authority. Hence, I concur with his findings and hold that appellants are eligible to avail CENVAT credit on Pig Moulds as capital goods and Lancer Pipes under Inputs as defined under Rule 2(a) / 2(k) of CCR, 2004.
8. In respect of the goods viz MS Plates, Channels, MS Rounds, TMT Bars, Lancing Pipes etc, while the credit has been availed under the category capital goods by restricting the quantum to 50%, the
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ch the moulds with molten pig iron passes through.
-MS Angles- used in columns hand rails, platforms, cornr joints, and brick lining chimneys, ladles, etc.
-TMT Bars- used in ground hooper, day bins, pump house, mould pulling sumps, and also used at furnace.
I find there is no contradicting facts recorded in the orders alleging that the goods were used for civil construction or laying of foundation or making structures for supporting capital goods. In para 13 of the order the lower authority had merely mentioned that the definition of inputs has undergone vast changes, but did not brought into record such changes. Even as effectively alleged in the notice, if the impugned goods failed the definition under Rule 2(a) of the CCR, 2004, it merited examination under Rule 2(k) ibidem. Based on the contentions raised in reply to the notice as well as in grounds of appeal, the appellant's thrust is on admissibility under the category 'Inputs' with a reference being drawn to the fact that
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ssed by the lower authority on the ground that the goods on which CENVAT credit was taken do not confirm to definition of inputs or capital goods. The denial on this ground is arbitrary and has to be pronounced legally unsustainable.
9. Admissibility of items to 'input' credit when it has been availed under capital goods category is rectifiable in terms of the rulings pronounced in the TAFE [2002 (140) ELT 401] and Philips Electronics [2008 (228) ELT 36] case laws. It is trite law that the larger benefit of credit cannot be denied on technicalities. The appellant shall furnish a Chartered Engineer's Certificate clearly showing deployment of the impugned credit availed goods. I find copy of the Chartered Engineer certificate dated 10.11.2014 certifying that raw material viz Channels, angles, plates, TMT Bars, Plates, Ms Flats etc., a quantity of 2575MTs was used in the manufacture of machinery like Siler Machine, Chimney, Flux, Screening New PCM, and Flux crushing etc., wa
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