IDMC LTD VERSUS C.C.E. & S.T.-VADODARA-I

EXCISE Appeal No. 10144 of 2021

[Arising out of OIA-VAD-EXCUS-001-APP-174-2020-21 dated 15/01/2021

passed by

Commissioner of Central Excise, Customs and Service Tax-VADODARA-I]

 

IDMC LTD

VERSUS

C.C.E. & S.T.-VADODARA-I

 

APPEARANCE:

Shri Dhaval K Shah, Advocate for the Appellant

Shri. Kalpesh P Shah, Superintendent (Authorized Representative) for the

Respondent

CORAM: HON’BLE MEMBER (TECHNICAL), MR. RAJU

FINAL ORDER NO.A / 10023 /2023

DATE OF HEARING: 05.01.2023

DATE OF DECISION: 05.01.2023

RAJU

 

This appeal has been filed by M/s. IDMC LTD. against denial of capital

goods Cenvat Credit on steel rack used for storage in the premises of the

appellant’s factory.

Learned Counsel argued that the issue is squarely covered by the

decision of Tribunal in the case of Sanghi Industries Ltd. vide Final order No.

A/10423-10424/2022 dated 10.05.2022.

Learned AR relied on the impugned order.

I have considered the rival submissions, I find that the issue is squarely

covered by the aforesaid decision of Tribunal in the case of Sanghi Industries

Ltd(supra), wherein Para 4.5 and 4.6 following has been stated.

“4.5 As regard the availment of Credit of Rs. 11,39,646/- availed on

furnitures, we find that there is no dispute that the said furnitures

are used in guest house and the guest house is part of factory. In

Board‟s Circular No. 943/4/2011-CX, dated 29-4-2011, it is

mentioned that “goods such as furniture and stationery used in an

office within the factory are goods used in the factory and are used

in relation to the manufacturing, business and hence, the credit on

the same is to be allowed”.

4.6 Undisputedly, the guesthouse is used for operations of the

factory. Nothing is available on record to show that guesthouse is

used for any other purpose. In view of this fact, since guesthouse

used for operations of factory which has direct nexus with factory

which produces excisable goods therefore Cenvat credit is admissible

to the appellant on the furnitures used in Guest House of the factory.

We also find that in the case of M/s Agarwal Foundries Vs. Commr.

of C. Ex., Cus. & S.T., Hyderabad 2015 (321) E.L.T. 267 (Tri. – Bang.)

the Tribunal held as under:

“2. After hearing both the sides, I find that in this

case air conditioner has been used within the

factory in the control panel room to keep the

temperature down. There is no dispute that it has

been installed in the factory. As regards furniture,

the learned counsel relied upon the Board’s circular

issued by the Board vide Circular No. 943/4/2011-

CX., dated 29-4-2011. In the circular it was

mentioned that ‘goods such as furniture and

stationery used in an office within the factory are

goods used in the factory and are used in relation

to the manufacturing business and hence the credit

of same is allowed’. This circular was issued after

the amendment of Cenvat Credit Rules specifically

denying benefit of Cenvat credit on certain

activities which are not at all related to

manufacture. The issue before me relates to the

period April 2007. According to the definition of

‘input’ as it existed during the relevant period,

inputs used in the factory ‘for any other purpose’

the credit is admissible. In this case there is no

denial of the fact that furniture had been used

within the factory. Under the circumstances, I have

to hold that appellant is eligible for the benefit of

Cenvat credit and I hold so. In the result the appeal

is allowed.”

4.1 I further find that the Tribunal in the case of Ashok Leyland John Deere

Construction Equipment Co. Pvt. Ltd.-2018 (2) TMI 458 (C. Chennai) has

examined this exact issue and observed as followed:

“4. I find that thereafter an identical issue has come up before

various benches of the Tribunal and the decisions are to effect that

storage racks, used for storing the raw materials is an integral part

of the final manufacturing activity of the assessee and credit has to

be allowed. In the case of M/s. Kosi Plast P. Ltd. Vs Commissioner

of Central Excise, Pune reported in 2011 (271) E.L.T. 93 (Tri. –

Mumbai), the said decision of the Tribunal in the case of M/s. Bayer

Indian Sytans Ltd., (supra) relied upon by -LB), the steel rack used

for raw material storage were held to be an integral part of the

manufacturing activity and hence cenvatable. To the same effect

are some other decisions of the Tribunal in the case of (1) M/s.

Welspun India Ltd. Vs Commissioner of Central Excise, Daman

reported in 2013 (296) E.L.T. 122 (Tri. -Ahmd.); (ii) M/s. Shree

Ramicides Chemicals P. Ltd Vs Commissioner of Central Excise

(Service Tax), Tiruchirapalli reported in 2014 (311) E.L.T. 102 (Tri.-

Chennai); and (iii) M/s. Parle Products Pvt. Ltd. Vs Commissioner

of Central Excise And Service Tax, Bangalore-Ill reported in 2016

(343) E.L.T. 498 (Tri-Bang.).”

Relying on the aforesaid decision, the impugned order is set aside. The

appeal is allowed.

(Dictated & Pronounced in the open Court)

(RAJU)

MEMBER (TECHNICAL)