Custom, Excise & Service Tax Tribunal
Jk Tyre & Industries Ltd vs Commissioner Of Central Excise, ... on 18 November, 2013
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Final Order No . 26958 / 2013 Appeal(s) Involved: E/2763/2011-SM [Arising out of Order in Appeal 101-2011 dt 13/08/2011 passed by CCE(Appeals), Mangalore JK TYRE & INDUSTRIES LTD VIKRANT TYRE PLANT 01, KRS ROAD, METAGALLI, MYSORE 570 016 Appellant(s) Versus Commissioner of Central Excise, Customs and Service Tax - MYSORE S1-S2...VINAYA MARGA, SIDDHARTHA NAGAR, MYSORE KARNATAKA 570011 Respondent(s)
Appearance:
Mr. Dattatra D Bhat, Authorised representative For the Appellant Mr. S. Teli, Deputy Commissioner(AR) For the Respondent CORAM:
Honble Shri B.S. V. Murthy, Technical Member Date of Hearing: 18/11/2013 Date of Decision: 18/11/2013 Order Per : B.S.V. Murthy The issue involved in this appeal is whether the appellant is eligible for CENVAT credit on MS angles, MS channels, HD steel coils and HR plates falling under Chapter 72 in the category of capital goods or not. The total demand of service tax is Rs.69,540/- with interest. The demand has been confirmed only for the period within the normal period of limitation.
2. The authorized signatory of the appellant submitted that the impugned items are components of coal handling system of the coal fired boiler installed in the appellants factory. He drew my attention to the photographs which show clearly that the items have been used in the conveyor system for handling coal. He also points out that Commissioner(Appeals) has also recorded a finding to the effect that impugned items are used in coal handling system. He also submits that the appellant is eligible as per the Circular issued by the Board on 02/04/2012.
3. I have considered the submissions. According to Circular No.964/07/2012-CX dt. 02/04/2012, the Board after examining the issue regarding eligibility of CENVAT credit on structural components of boiler, clarified as under:-
2.?The matter has been examined in the Board. The Boilers are a combination of various systems such as Coal Handling System, Coal Feeding System, Draft Air System, Demineralization Plant, Boiler Feed Water System, Boiler Tubes, Boiler Drums, Super Heat System, Flue Gases Treatment System and Ash Handling System etc. All these Systems work in tandem to make a modern Boiler. These Systems comprise of many parts including structural components which are essentially the part of Boiler by way of technical specifications. As per Section Note 4 to the Section XVI of the First Schedule to the Central Excise Tariff Act, 1985, Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function.
4. In view of the above clarification and also after taking note of the impugned order-in-appeal and the submissions of the authorized signatory, I find that appellant is eligible for the CENVAT credit availed by them. Accordingly, appeal is allowed with consequential relief, if any, to the appellant.
(Operative part of this order was pronounced in the court on conclusion of the hearing) B.S.V. MURTHY TECHNICAL MEMBER Raja..
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