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Chennai North Commissionerate Appearance:-

Shri. Sai Prashanth, Advocate for the Appellant Shri. B. Balamurugan, AC (AR) for the Respondent CORAM:
Hon'ble Shri P Dinesha, Member (Judicial) Date of Hearing/Decision:17.09.2018 Date of Pronouncement:03.10.2018 Final Order No. 42575 / 2018 The assessee-appellant is a Government of India Undertaking, engaged in the business of refining of petroleum crude and marketing various petroleum products thereof. The appellant has availed CENVAT Credit on various inputs and capital goods including ‚Selective Pallet Racking System‛, falling under sub- heading 73089090 which was used for storing the raw materials and finished goods in the appellant's store room. A Show Cause Notice No. 02/2016 dated 15.02.2016 was issued by the Revenue wherein it proposed to deny the CENVAT Credit availed on these Pallet Racking System on the ground that the same could not be classified as 'capital goods' within the meaning of Rule 2 of the CENVAT Credit Rules, 2004. The adjudicating authority, however, after considering the explanation of the appellant, vide Order-in-Original dated 14.10.2016 confirmed the proposals in the Show Cause Notice; and on appeal before the lower appellate authority, the appellant having not met with success, has filed this appeal before this forum.

4. Per contra, Ld. DR supported the findings of the lower authorities and further submitted that the decisions relied upon by the Ld. Advocate are not applicable since in many cases the decision of the Larger Bench in Banco Products (India) Ltd. (supra) is followed; the issue involved in Banco Products (India) Ltd. (supra) was the admissibility of CENVAT Credit on plastic crates, which were movable as against a stationed Pallet Racking System. 5.1 I have considered the rival contentions, perused the documents placed on record and have gone through the decisions relied on by the Ld. Advocate. In one of the decisions in the case of M/s. Gestamp Sungwoo Automotive (Chennai) Pvt. Ltd. (supra), the Division Bench of the Chennai Tribunal has addressed the issue with regard to the eligibility of credit on pallets, storage racks, etc. After considering the rival contentions, this Bench has ruled as under :