M/S. Bajaj Hindusan Ltd vs C.C.E. Lucknow

[Arising out of Order-in-Appeal No. 171-CE/LKO/2010 dated 05.08.2010 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?

M/s. Bajaj Hindusan Ltd. .Appellants

Vs.

C.C.E. Lucknow .Respondent

Appearance:

Shri P.K. Mittal, Advocate for the Appellant

Shri G.R. Singh, DR for the Respondent

CORAM:

Hon'ble Shri Ashok Jindal, Member (Judicial)

Date of Hearing: 22.06.2015

FINAL ORDER NO. 51991/2015-EX(SM)

Per Ashok Jindal:

The appellant is in appeal against the impugned order wherein Cenvat Credit on chequered plates has been denied to the appellant for the period June 2007 to August 2007 on the premises that as plate has been manufactured by the appellant are structured and embedded to earth. Therefore, they do not qualify as capital goods as defined under Rule 2(a) of the Cenvat Credit Rules 2004. Aggrieved from the said order appellant is before me.

2. The Ld. Cousnel for the appellant submits that in the case of Simbhaoli Sugar Mills Ltd. Vs. CCE Meerut-2001 (135) ELT 239 (Tri-Del) this Tribunal held that if any material used for raising structure to support the parts of machine then they will be covered by explanation of Rule 57 Q and entitled to take Cenvat Credit. The said decision has been affirmed by the Honble Apex Court reported in 2002 (139) ELT 829. He also submitted that in the case of Kothari Sugars & Chemicals Ltd. Vs. CCE-2002 (147) ELT 849 (Tri Chennai) has also taken the same view. Further in the case of Mukand Ltd. Vs. CCE-2005 (182) ELT 67 (Tri-Bang.) has also allowed the Cenvat Credit on channels etc used in manufacture of storage tank. Further in the case of Girdharilal Sugar & Allied Inds. Ltd. Vs. CCE-2005 (128) ECR 31 (Tri-Del) this Tribunal has allowed Cenvat Credit on CTD parts etc. relying on the decision of Simbhaoli Sugar Mills Ltd. (Supra).

3. On the other hand Ld. AR oppose the contention of the Ld. Counsel and submits that in the case of Saraswati Sugar Mills Vs. CCE Delhi-2011 (270) ELT 465 (SC) the Apex Court has denied the Cenvat Credit on the items which have been embedded to earth. Admittedly, in this case the platform was constructed from this chequered plates in question. Therefore, they are not entitled to take Cenvat Credit.

4. In rejoined to the arguments of the Ld. AR the Ld. Counsel relied on the decision of India Cement Ltd. Vs. CCE-MANU/TN/1270/2015 wherein after distinguishing the decision of the Honble Apex Court in the case of Saraswati Sugar Mills (Supra) the Honble High Court has allowed Cenvat Credit on the steel items which were used as a platform by the assessee. He also relied on the decision of Sonhira SSK Ltd. Vs. CCE-2014 (306) ELT 579 (Tri-Del) to say that in that case also this Tribunal has distinguished the decision of Saraswati Sugar Mills (Supra) and granted Cenvat Credit to the respondent.

5. Heard the parties. Considered the submission.

6. In this case these chequered plates have been procured by the appellant for fabrication of platform and house machinery, boiling house, boiler, evaporators and pan sections. The case of the Revenue is that these chequered plates have been used for erection of platform which are embedded to earth. Therefore, they are not entitled to take Cenvat Credit. But in the case in hand these platforms are integral part of the boiler unit, pan section, evaporator, boiling house and centrifugal machine. Therefore, these are an integral part of this plant and machine and in the case of Simbhaoli Sugar Mills Ltd. (Sugar) the Honble Apex Court has allowed Cenvat Credit on chequered plates only. In these circumstances, after relying on the decision in the case of Simbhaoli Sugar Mills Ltd. (Supra) and further relying on the decision in the case of India Cement Ltd. (supra) I am of the view that chequered plates used for fabrication of platform is an integral part of plant and machinery that is boiler, boiling house, pan section, etc.

7. In these circumstances, I hold that appellant is entitled to take Cenvat Credit. Consequently, impugned order is set aside. Appeal is allowed with consequential relief if any.

(Dictated and pronounced in the open court)

(Ashok Jindal) Member (Judicial)

Bhanu

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E/3502/2010-EX(SM)