COMMISSIONER, CENTRAL EXCISE Vs. AMBUJA CEMENT EASTERN LTD

JUDGEMENT

(1.) This appeal by the Revenue (Appellant - Commissioner, Central Excise, Customs & Service Tax) arises out of the order dated 30.11.2015 passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi, whereby the appeal filed by the Revenue was rejected and the assessee was held entitled to claim MODVAT Credit on the inputs used for making capital goods in the nature of M.S.Plates, M.S.Channels, M.S. Joists, etc.

(2.) The assessee is engaged in the manufacture of cement. The assessee is availing MODVAT credit on various inputs used in making capital goods in terms of Rule 57Q, now re-numbered as Rule 2(b) of the CENVAT Credit Rules, 2002 (hereinafter referred to as 'the Rules of 2002' in short). The respondent was using inputs in the nature of M.S.Plates, M.S.Channels, Joists, etc. for erection of Coal Hoppers, Ducting for Bag Filter, Conveyor Belt, Duct for Colling, Venting & Exhaust Charge air for D.G. set for Coal Bunker, Coal Feeding to boiler - TPP, Chute etc. It is not disputed that the items such as Coal Hoppers, Ducting for Bag Filter, Conveyor Belt, Duct for Colling, Venting & Exhaust Charge air for D.G. set are essential parts of the factory where cement is manufactured.

(3.) The Assessing Authority issued notices to the assessee for different periods asking the assessee to show cause why the CENVAT credit obtained by the assessee in respect of these items be not reversed. Reply to these notices was filed. The Assessing Authority held that the assessee had wrongly claimed CENVAT credit facility.