C.C.E. & S.T. Raipur vs M/S. Sks Ispat & Power Ltd

Customs Excise and Service Tax Appellate Tribunal26 June 2015

CitationAppeal No. E/60307/2013-EX(SM)

Ratio decidendi

The rule this decision rests on

Where a Chartered Engineer's certificate establishes that rails laid for EOT cranes are essential components of those cranes, and the Revenue produces no contrary evidence, the rails are to be treated as components of the crane and the respondent is entitled to Cenvat credit on them; the Revenue's reliance on the proposition that rails embedded in the earth are fixed structures and not part of the crane, as in the cited decision, does not displace that evidentiary finding.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

IN THE CUSTOMS, EXCISE AND SERVICE TAXAPPELLATE TRIBUNAL, NEW DELHIPRINCIPAL BENCH, COURT NO. IIAppeal No. E/60307/2013-EX(SM)

[Arising out of Order-in-Appeal No. 180/CE/RPR-I/2013 dated 26.06.2013 by the Commissioner of Customs, Central Excise & Service Tax (Appeals), Raipur].

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. & S.T. Raipur .Appellants

Vs.

M/s. SKS Ispat & Power Ltd. .Respondent

Appearance:

Shri G.R. Singh, DR for the Appellant

None present for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing: 26.06.2015

FINAL ORDER NO. 52051/2015-EX(SM)

Per Ashok Jindal:

The short issue involved in the matter is that whether respondent is entitled to take Cenvat Credit on Rails which are laid in the ground and becomes fixed asset or not.

2. The contention of the Ld. AR is that as these rails are fixed to the earth and EOT cranes are being run over them. Therefore, these are the structures which are embedded to earth. In these circumstances, the respondent are not entitled to take Cenvat Credit. In support to his contention he relied on the decision in the case of Nelvetha Cast Steels (P) Ltd. Vs. CCE Madhurai-2013 (294) ELT 127 (Tri-Chennai) to say that the support will not automatically become the part of crane.

3. None appeared on behalf of the respondent.

4. Matter is taken up for consideration and I have perused the impugned order wherein Ld. Commissioner (A) has examined the issue on the basis of certificate issued by the Chartered Engineer saying that these rails were used for EOT cranes and they are essential components of EOT cranes. The Ld. Commissioner has observed as under:

5. I have gone through the observation made by the Ld. Commissioner (A) in the impugned order who has relied on the certificate issued by the Chartered Engineer and Revenue has failed to produce any evidence contrary to them.

6. In these circumstances, 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

E/60307/2013-EX(SM)

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