KCP LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, GUNTUR

JUDGEMENT

(1.) THIS appeal has been filed against the Order -in -Original No. 21/2007 -C.Ex. (Commr.) dated 31 -12 -2007, passed by the Commissioner of Customs, Central Excise and Service Tax, Guntur.

(2.) S /Shri J. Sankararaman and K. Krishnan, learned Advocates appeared on behalf of the appellants and Ms. Joy Kumari Chander, learned Jt. CDR for the Revenue.

(3.) WE heard both the sides. The only issue involved in this appeal is whether the inputs which are used in the manufacture of Clinker Silo which are used in the appellants factory for storage are entitled for Cenvat credit. The appellants had taken Cenvat credit on the Steel plates, sheets, etc. used in the manufacture of clinker silo which are actually storage tank for the final products in the cement factory. They had taken Cenvat credit. Revenue proceeded against the appellants on the ground that taking such Cenvat credit is irregular. Proceedings were initiated against them. The reasoning of the Commissioner is that the said inputs are used in the manufacture of clinker silos which are fixed and have become an immovable property. Therefore they are not excisable. Since they are not excisable, Cenvat credit cannot be taken on them. This is the contention of the Revenue. The learned Jt. CDR reiterated the Order -in -Original.