C.C.E. Jaipur-I vs M/S. Bajaj Hindustan Ltd

[Arising out of Order-in-Original No. 187-CE/LKO/07 dated 12.12.2007 by the Commissioner of Customs, Central Excise & Service Tax (Appeals), Lucknow].

For approval and signature:

Honble Shri Ashok Jindal, Member (Judicial)

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?

2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?

3 Whether Their Lordships wish to see the fair copy of the Order?

4 Whether Order is to be circulated to the Departmental authorities?

C.C.E. Jaipur-I .Appellants

Vs.

M/s. Bajaj Hindustan Ltd. .Respondent

Appearance:

Shri R.K. Mishra, DR for the Appellants

Shri P.K. Mittal, Advocate for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing: 21.05.2015

FINAL ORDER NO. 51712/2015-EX(SM)

Per Ashok Jindal:

Revenue is in appeal against the impugned order wherein both the lower authorities have allowed Cenvat Credit on MS plates, MS Angle, MS Channel, Steel, Aluminum sheets & bar & rods that were used by the respondent for repairs and maintenance of capital goods on the ground that Cenvat Credit on these items is not available as these items have been used by the respondent in repairs and maintenance of existing equipment / plant and machinery and making supporting structures for existing plant and machinery.

2. Heard the parties. Considered the submissions.

3. In the show cause notice it is alleged that the items in dispute have been used by the respondent in repairing and maintenance of exisiting plant and machinery or for staging or supporting structure i.e. civil construction work. But both the lower authorities have examined usage of these items and in the adjudication order the adjudicating authority has observed as under:

With the aforesaid report Superintendent has enclosed detailed chart as Annexure E of the RUD wherein details of capital goods manufactured out of inputs have been prepared. It is found that these capital goods are namely installation of Zero Mill, upgradation of Mill base frame, upgradation of Truck Trippler, Addition of pump in mill house, Modification of crane carrier, Additon of rotary screen, Installation of Turbine, Modification of Existing distribution panel, texmaco boiler steam distribution network, extension of gantry, interfacing / addition of semi kestner, addition of juice clarifier, addition of juice sulphitor, addition of juice pump, addition of injection pump, addition of pan 80, 100 and 120 tonne, addition of hot water tank and pan supply tack, addition of oliver filter, addition of air compressor, addition of FFE, addition of C.F. Machine, addition of sulphur furnance, addition of lime station, addition of sugar grader  weighing machine, modification of rack elevator, upgradation of SCS, New Distillery Plant, addition of Juice Heater at the Palia Kalan Unit and mechanical digester at ETP, bagasse carrier for new boils, syrup sulphiter 100 TPH boiler, installation of clear juice heater, juice heats, bagacilo blower, upgradation and medication of Miling, truck tripler upgradation of B.W. Mill, 3 MWTG Set, Mill house crane and Ext of Mill, NK 1503 Centrifugal Machine, Installation for 100 Ton pan, addition of Vacuum Filter, Widening of Cane Carrier, Replacement of Head End Shaft, shifting of stork mill carrier, raising height of sugar grader, sugar weighing & bagging machine, DG set with alternator and panel, shifting of stork mill, New truck trippler at stork mill installation of falling film evaporator, air compressor 300 MCU/HRS in respect of Gola Unit.

This is also apparent that M.S. Plant, Angles, channels and joist have been used and their quantity and Cenvat availe has been categorically given. On perusal of letter of the party dated 01.09.2004 RUD as Annexure D it is revealed that these items have been used in the factory of manufacture in the making of capital goods, to ensure addition expansion and modification of plant and machinery. The reference has been given in the SCNs about the variation of the statement of the party dated 03.06.2004 & 01.09.2004, it is observed that party has insisted upon use of the impugned items for the making of difference type of capital goods which have been further used in the factory of manufacture. Therefore, the apprehension drawn that the two statements were different is not correct. In fact, they speak about the same facts and need to be interpreted in the right spirit. This is also observed that in the impugned SCNs there is no allegation about being used in the repair and maintenance of the existing plant and machinery. In view of the explanation the definition of input the admissibility of Cenvat is that the input should be used in the manufacture and capital goods. In the absence of any specific detail about the use otherwise that the Cenvat was not admissible in respect of manufactured capital goods used for the addition, expansion and modification, the submission of the department is not acceptable.

4. Thereafter, he allowed Cenvat Credit to the respondent. In the impugned order also the Ld. Commissioner (A) has observed as under:

As regards Cenvat Credit on angles and channels, I find that undisputed fact is that angles & channels have been used for addition, expansion and modification of plant and machinery.

5. These findings have not been contravened by the Revenue with any cogent evidence and also have made allegations in their grounds of appeal without any supporting evidence. Therefore, I do not find any infirmity with the impugned order wherein both the lower authorities have examined the usage of these items and held that these items have been used in fabrication / repairs and maintenance of plant and machinery.

6. Therefore, I do not find any infirmity with the impugned order. Same is upheld. Appeal filed by the Revenue is dismissed.

(Dictated and pronounced in the open court)

(Ashok Jindal) Member (Judicial)

Bhanu

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E/583/2008-EX(SM)