Determination of Cenvat Credit on SS Pipes and Various Types of Valves as Capital Goods and Input: CESTAT Remands Matter [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), remanded back matter in order to determine the cenvat credit on SS Pipes and various types of Valves as capital goods and input.

The appellant, Rishi Kiran Logistics P Limited, are provider of service of storage and warehousing service. They have used the aforesaid goods for fabrication, erection and construction of storage tank on which they have availed Cenvat credit and the said Cenvat credit was utilized for payment of service tax for ‘storage and warehousing’ service.

The Revenue has disallowed the Cenvat credit on the ground that the tank constructed and erected by the appellant is not moveable goods accordingly, in terms of Rule 3(1), the appellant is not entitled for Cenvat credit.

The issue involved in the present case is that whether the appellant is entitled for the Cenvat credit in respect of SS Pipes, SS/CR Coils, MS Angles, Plastic Hose assembly, various types of Valves and Valve Automation system considering them as capital goods as well as input. These goods were used for erection/ fabrication and manufacture of new tank.

Amal Dave, Counsel appeared on behalf of the appellant at the outset submitted that this issue is no longer res-integra as identical cases have been decided in various decisions of this Tribunal. Moreover, in the appellant’s own case, learned Commissioner (Appeals) allowed the appeal by extending Cenvat credit on the very same goods therefore the issue is no longer res-integra.

Rajesh Nathan, Assistant Commissioner, (AR) appeared on behalf of the Revenue reiterated the findings of the impugned order.

A two-member bench comprising Ramesh Nair, Judicial Member and CL Mahar, Technical Member observed that “the Adjudicating Authority has not considered the judgments viz-a-viz facts of the present case. Therefore, we are of the view that Adjudicating Authority must reconsider the entire matter based on the judgments which were passed much after the impugned order passed by him. Therefore, it is incumbent on the Adjudicating Authority to reconsider the whole issue in the facts of the present case equitable with various judgments delivered subsequent to the passing of the impugned order.”

“Accordingly, we set-aside the impugned order and remand the matter to the Adjudicating Authority for passing a fresh order keeping in mind the observations made hereinabove. The appeal is allowed by way of remand to the Adjudicating Authority” the Tribunal concluded.

To Read the full text of the Order CLICK HERE

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