By TIOL News Service

AHMEDABAD, JAN 19, 2013: THE Respondents are engaged in the manufacture of Transformer and Parts thereof falling under Chapter 84 of the CETA, 1985. They availed CENVAT credit amounting to Rs.3,34,479/- on capital goods viz. storage rack falling under Chapter 72/73. A SCN dated 23.3.2009 was issued to recover wrongly availed CENVAT credit under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944 and the same was confirmed by the original adjudicating authority. However, the Commissioner (Appeals) allowed the appeal of the Respondents. Revenue is in appeal against the decision in the impugned order wherein it was held that the respondent is eligible for the benefit of CENVAT credit of storage racks holding that same can be treated as capital goods. Commissioner (Appeals) has relied upon the decision of the Larger Bench in the case of Banco Products (India) Limited - (2009-TIOL-421-CESTAT-AHM-LB). The Revenue Representative reiterated the submissions made in the memo of appeal.

The Tribunal Observed that -

the decision of the Larger Bench in the case of Banco Products (India) Limited (2009-TIOL-421-CESTAT-AHM-LB) is squarely applicable to the facts of this case and in the case of Banco Products (India) Limited also the plastic crates which are used for movement of raw materials and storage of raw materials were held to be eligible as input or capital goods for taking CENVAT credit.

Finally, the Tribunal rejected the appeal filed by the Revenue.

(See 2013-TIOL-119-CESTAT-AHM)