w w w . L a w y e r S e r v i c e s . i n



Birla Corporation Limited V/S CCE, Bhopal


Company & Directors' Information:- BIRLA CORPORATION LIMITED [Active] CIN = L01132WB1919PLC003334

    Excise Appeal No. 56986 of 2013 (Arising out of the Order-in-Original No. 03/Commr/CEX/ADJ/ STN/2013 dated 24/01/2013 passed by The Commissioner, Central Excise, Bhopal) and Final Order No. 54109/2017

    Decided On, 19 June 2017

    At, Customs Excise Service Tax Appellate Tribunal Principal Bench New Delhi

    By, THE HONORABLE JUSTICE: S.K. MOHANTY
    By, MEMBER AND THE HONORABLE JUSTICE: B. RAVICHANDRAN
    By, MEMBER

    For Petitioner: Bipin Garg, Advocate And For Respondents: H.C. Saini, Authorized Representative (DR)



Judgment Text


1. The appeal is against order dated 24/01/2013 of Commissioner of Central Excise, Bhopal. The appellants are engaged in the manufacture of cement and clinker liable to Central Excise duty. They were also availing credit of duty paid on inputs and capital goods in terms of Cenvat Credit Rules, 2004. The appellants entered into with agreement with M/s. Machmet India Ltd. for manufacture and supply of conveyor components and further agreement with M/s. Satna Cement Works for structural work of conveyor foundation. The dispute in the present case relates to the eligibility of the appellant to take credit of duty paid on various Iron Steel items procured by them and supplied to M/s. Machmet for further use in the manufacture/fabrication of conveyor parts. These Iron and Steel items are mainly angles, channels, plates etc. falling under Chapter 72 or 73. The Revenue entertained a view that the appellants have availed Cenvat credit wrongly and accordingly proceedings were initiated by issue of show cause notice dated 28/04/2011. The case was adjudicated and the Original Authority disallowed the Cenvat credit of Rs. 6,96,29,549/- and imposed equal amount of penalty under Rule 15 of Cenvat Credit Rules read with Section 11AC of the Central Excise Act, 1944.

2. The learned Counsel for the appellant contested the original order both on limitation and on merit. On limitation, he submitted that they have indicated the credit in their regular return and further given detailed reply about the credit and usage of inputs on 13/09/2007 in reply to a letter of Superintendent of Central Excise Audit. The present show cause notice was issued on 28/04/2011 covering the period of April 2006 to June 2009. It is his contention that the whole demand is hit by time bar. He contested specifically the findings recorded by the Original Authority to the effect that they have not provided the details regarding exact use of items on which credit has been availed.

3. On merit, it is submitted that the show cause notice mainly focused on the ineligibility of credit to the appellant on the ground that the Iron and Steel items do not fall within the definition of capital goods and the civil fabrication and construction work are in creation of immovable property and as such no credit can be availed on such Iron and Steel items. Whereas, the Original Authority examined the issue regarding the status of M/s. Machmet. It was held, the inputs are eligible to credit only at the hands of manufacturer (M/s. Machmet), not at the hands of the appellant. He further examined the availability of Notification No. 65/95-CE and concluded that the same is available only to a manufacturer and not to the appellant. Regarding other items like LV classifier parts, welding machines, dumper with fan etc., the appellant submitted that they are eligible for credit as these are directly used by them in connection with either fabrication of capital goods or repair of the same.

4. The learned AR reiterated the findings of the Original Authority and submitted that the appellants paid duty only on the Iron and Steel items which are not covered under the category of capital goods and these Iron and Steel items are actually used by their main contractor M/s. Machmet. As such, he submitted that the Original Authority is correct and in denying the credit.

5. We have heard both the sides and perused the appeal records. Though various items and components are involved in dispute, substantial portion of credit is with reference to Iron and Steel items procured by the appellant and supplied to their contractor M/s. Machmet India who were engaged in manufacture of components of conveyor belt. Later, the conveyor belts are erected in the required places in the appellant's premises by erecting foundation by another contractor. On perusal of the show cause notice as well as the impugned order, we note that the Original Authority has considered the issue on factors, which were not alleged or proposed in the show cause notice. As already noted, the proposals in the show cause notice are mainly on the ground that the Iron and Steel items are not capital goods and the resultant product is immovable property, ineligible to credit. Whereas the Original Authority focused on the status of the contractor (M/s. Machmet) and further examined the eligibility of Notification No. 65/95-CE. On perusal of the impugned order it is not clear as to whether M/s. Machmet carried out the operations within the premises of the appellant. The learned Counsel specifically submitted that whichever items were manufactured and fabricated by M/s. Machmet from their own facilities outside the premises of the appellant, on which duty has been paid, there is no dispute in the present proceedings on the said matter. The dispute relates to only the goods fabricated by the contractor within the premises of the appellants. In this connection, we note that the applicability of Notification No. 65/95-CE has been examined by the Original Authority. The said notification gives exemption to excisable goods manufactured in a workshop within the factory. We note that the exemption is with reference to location of manufacture. There is no reference as to the identity of the manufacturer. As noted already, the impugned order did not examine the issues as proposed in the show cause notice, and proceeded to arrive at conclusions at different facts and reasonings. As such, we find it fit and proper to set aside the same and remand the matter back to the Original Authority for a fresh decision.

6. In this connection, we note the submissions made by the appellant with specific reference to the letter dated 05/03/2008 of Superintendent of Central Excise and their reply dated 08/04/2008. We note the submissions made by the appellants are to be examined with reference to the proposals made in the show cause notice. Here, we may note that credit availability on similar type of items has been subject matter of various decisions by this Tribunal as well as High Courts and the Hon'ble Supreme Court. The appellants made specific reference to the following decisions:-

(i) Ultratech Cement Ltd. vs. CCE & ST, Jaipur - I reported in 2017 - TIOL - 91 (CESTAT - DEL);

(ii) Ultratech Cement Ltd. vs. CCE, Jaipur - II reported in 2017 - TIOL - 07 (CESTAT - DEL.);

(iii) Manglam Cement Ltd. vs. CCE, Jaipur reported in 2017 - TIOL - 141 (CESTAT - DEL.);

(iv) Singhal Enterprises Pvt. Ltd. vs. CCE, Raipur reported in : 2016 (341) E.L.T. 372 (Tri.);

(v) Mundra Ports & Special Economic Zone Ltd. vs. CCE reported in : 2015 (39) S.T.R. 726 (Guj.);

(vi) Birla Corporation Ltd. vs. CCE, Raipur reported in : 2007 (212) E.L.T. 162 (S.C.);

(vii) Birla Corporation Ltd. vs. CCE reported in : 2005 (186) E.L.T. 266 (S.C.);

(viii) Vikram Cement Ltd. vs. CCE, Indore reported in : 2006 (194) E.L.T. 3 (S.C.);

(ix) Vikram Cement vs. CCE, Indore reported in : 2006 (197) E.L.T. 145 (S.C.);

(x) Aditya Cement vs. Union of India reported in 2008 (221) E.L.T. 362 (Raj.);

(xi) Continental Foundation Jt. Venture vs. CCE, Chandigarh - I reported in : 2007 (216) E.L.T. 177 (S.C.);

(xii) Pushpam Pharmaceuticals Company vs. CCE, Bombay reported in : 1995 (78) E.L.T. 401 (S.C.);

(xiii) Ultratec

Please Login To View The Full Judgment!

h Cement vs. CCE, Raipur reported in : 2016 (332) E.L.T. 356 (Tri.); and (xiv) CCE, Chennai vs. Essar Engineering & Contractors Ltd. reported in 2009 - TIOL - 140 (CESTAT - MAD.). 7. As the matter is being remanded for a fresh decision, the Original Authority may consider the facts of the present case and applicability of these case laws to the said facts. 8. WE also note that the appellant made a strong objection regarding limitation. The question of limitation also is kept open for a fresh decision. 9. In view of the above discussion and analysis, the impugned order is set aside. The matter is remanded back to the Original Authority for a fresh decision. The appellant shall be given adequate opportunity to present their side of the case. The appeal is allowed by way of
O R







Judgements of Similar Parties

01-06-2020 Aditya Birla Money Limited, Rep. By its Head – Legal & Compliance, L.R. Murali Krishnan Versus The National Stock Exchange of India Limited, Investors Services Cell, Kotturpuram & Others High Court of Judicature at Madras
04-05-2020 Priyambada Devi Birla & Birla Corporation Ltd. Versus Arvind Kumar Newar & Others High Court of Judicature at Calcutta
06-02-2020 Mahesh Kumar Sharma Versus The Principal, Vidya Niketan Birla Public School, Pilani District Jhunjhunu & Others High Court of Rajasthan Jaipur Bench
30-01-2020 Pramod Poddar Versus Birla Sun Life Insurance Company Limited & Others National Consumer Disputes Redressal Commission NCDRC
29-01-2020 Chedde Mahesh Versus Birla Sun Life Insurance Co. Ltd & Another Andhra Pradesh State Consumer Disputes Redressal Commission Hyderabad
23-01-2020 Birla Sun Life Insurance Company Limited & Others Versus Sunita Madya Pradesh State Consumer Disputes Redressal Commission Bhopal
29-11-2019 Birla Sun Life Insurance Company Ltd. & Another Versus Ashok Kumar Kuthiala Himachal Pradesh State Consumer Disputes Redressal Commission Shimla
15-11-2019 The Management of M/s. Birla Te Versus Chunni Lal High Court of Delhi
15-10-2019 Birla Sun Life Insurance Co. Ltd. & Another Versus Golla Venkateswaramma Andhra Pradesh State Consumer Disputes Redressal Commission Hyderabad
24-09-2019 B.M. Birla Heart Research Centre Versus State of West Bengal & Others High Court of Judicature at Calcutta
20-08-2019 Birla Sun Life Insurance Co. Ltd. Versus Konchada Ravi Kumar National Consumer Disputes Redressal Commission NCDRC
19-07-2019 Sidharth Chauhan Versus Aditya Birla Real Estate Fund Through its investment Manger & Lawful attorney, Aditya Birla Sun Life AMC Limited & Another High Court of Judicature at Bombay
31-05-2019 Beena Rajesh Raika Versus Birla Sun Life Insurance Co. Ltd. & Others National Consumer Disputes Redressal Commission NCDRC
09-05-2019 Birla Corporation Limited Versus Adventz Investments & Holdings Limited & Others Supreme Court of India
18-04-2019 Ashutosh Bansal Versus Birla Institute of Management & Technology & Others National Consumer Disputes Redressal Commission NCDRC
07-03-2019 Isha Distribution House Pvt. Ltd. Versus Aditya Birla Nuvo Ltd. & Another Supreme Court of India
07-03-2019 Birla Institute of Technology Versus State of Jharkhand & Others Supreme Court of India
26-02-2019 Sumitra Samantray Versus Birla Sun Life Insurance Co. Ltd. & Another National Consumer Disputes Redressal Commission NCDRC
30-01-2019 The Birla Sr. Secondary School Versus P.O., Industrial Tribunal-III & Another High Court of Delhi
09-01-2019 Birla Institute of Technology Versus State of Jharkhand & Others Supreme Court of India
07-01-2019 Birla Institute of Technology Versus State of Jharkhand & Others Supreme Court of India
07-01-2019 Aditya Birla Finance Ltd Versus Vishal Chopra & Others High Court of Chhattisgarh
27-11-2018 Bangalore International Airport Area Planning Authority Versus Birla Super Bulk Terminal (Now A Unit of Ultra Tech Cement Ltd.) & Others Supreme Court of India
01-11-2018 V. Kalyani Versus Aditya Birla Money Limited, (Formerly known as Apollo Sindhoori Capital Investments Limited), Chennai & Others High Court of Judicature at Madras
24-09-2018 Rajeshwar Mahto Versus Alok Kumar Gupta, G.M. M/s Birla Corporation Ltd. Supreme Court of India
04-09-2018 Norbert Shaba Rego Versus Birla Sun Life Insurance Co. Ltd. & Another National Consumer Disputes Redressal Commission NCDRC
27-07-2018 M.K. Bajoria, Director, M/s. Marshall Sons & Co (Mfg) Ltd., Kokattal Versus Birla tyres, Represented by its Accounts Officer, Sarojkumar Padby, Chennai High Court of Judicature at Madras
24-07-2018 Sudesh Bala Versus Birla Sun Life Insurance Company Limited, Gurgaon & Another Haryana State Consumer Disputes Redressal Commission Panchkula
13-07-2018 Aditya Birla Finance Limited Versus Carnet Elias Fernandes Vemalayam & Others High Court of Madhya Pradesh
10-07-2018 Aditya Birla Nuvo Limited Versus M/s. R.S. Sales Corporation & Another High Court of Delhi
03-07-2018 M/s. Aditya Birla Money Limited (formerly known as M/s.Apollo Sindhoori Capital Investments Limited), Chennai Versus V. Kalyani & Others High Court of Judicature at Madras
01-06-2018 The Management M/s. CIMMCO Birla Limited, Bharatpur, Through its Factory Manager Versus The State of Rajasthan, Through its Special Secretary-Cum-Labour Commissioner, Government of Rajasthan & Others High Court of Rajasthan Jaipur Bench
01-06-2018 The Management M/s. CIMMCO Birla Limited, Bharatpur, Through its Factory Manager Versus The State of Rajasthan, Through its Special Secretary-Cum-Labour Commissioner, Government of Rajasthan & Others High Court of Rajasthan Jaipur Bench
01-06-2018 The Management M/s. CIMMCO Birla Limited, Bharatpur, Through its Factory Manager Versus The State of Rajasthan, Through its Special Secretary-Cum-Labour Commissioner, Government of Rajasthan & Others High Court of Rajasthan Jaipur Bench
30-05-2018 National Engineering Industries Ltd. Versus Cimmco Birla Ltd. National Company Law Appellate Tribunal
05-05-2018 Kali Kant Jha Versus Birla Textile Mills High Court of Himachal Pradesh
26-04-2018 Birla Corporation Limited V/S Commissioner of Central Excise, Lucknow Customs Excise Service Tax Appellate Tribunal Regional Bench Allahabad
23-02-2018 Rajeshwar Mahto Versus Alok Kumar Gupta, G.M. M/s Birla Corporation Ltd. Supreme Court of India
22-02-2018 Birla Sun Life Insurance Co. Ltd. & Another Versus Rajesh Chhajjer National Consumer Disputes Redressal Commission NCDRC
18-02-2018 Priyamvada Devi Birla (Deceased) & Others Versus Ajay Kumar Newar & Others High Court of Judicature at Calcutta
19-01-2018 Birla Cellulosic V/S Commissioner of Central Excise-Bharuch Customs Excise Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad
11-12-2017 M. Padmanabha Kamath, Kerala Versus M/s Aditya Birla Money Limited, Mangalore & Another High Court of Judicature at Madras
15-11-2017 Birla Corporation Ltd V/S Commissioner of Central Excise Customs Excise Service Tax Appellate Tribunal Principal Bench New Delhi
24-10-2017 Birla Sun Life Insurance Co. Ltd. Versus Subhash Chander & Another National Consumer Disputes Redressal Commission NCDRC
03-10-2017 Birla Sun Life Insurance Company Ltd. Versus Mita B. Mehta National Consumer Disputes Redressal Commission NCDRC
11-09-2017 Birla Corporation Ltd V/S C.C.E., Udaipur Customs Excise Service Tax Appellate Tribunal New Delhi
08-09-2017 Birla Corporation Limited Versus South Eastern Coalfields Limited & Others High Court of Judicature at Calcutta
21-08-2017 South Eastern Coalfields Ltd. Versus Birla Corporation Ltd. & Another Supreme Court of India
04-08-2017 Birla Corporation Ltd V/S Commissioner of Central Excise, Lucknow Customs Excise Service Tax Appellate Tribunal Regional Bench Allahabad
13-07-2017 Birla Sun Life Insurance Co. Ltd. & Another Versus Arvind Kaur National Consumer Disputes Redressal Commission NCDRC
06-07-2017 K. Latha Versus M/s. Birla Sun Life Insurance Co. Ltd. Telangana State Consumer Disputes Redressal Commission Hyderabad
20-06-2017 Birla Institute of Scientific Research V/S CCE, Jaipur Customs Excise Service Tax Appellate Tribunal New Delhi
16-06-2017 Birla Corporation Limited V/S Commissioner CCE & ST, Bhopal Customs Excise Service Tax Appellate Tribunal New Delhi
08-06-2017 Aditya Birla Fashion and Retail Limited (Pantaloons Division) (Formerly known as Pantaloons Fashions and Retail Limited), Rep. By its General Manager-Legal & Compliance Versus M/s. Prashanth Properties Private Limited, Rep.by its Managing Director, Joseph Prem Raja & Another High Court of Judicature at Madras
05-06-2017 M/s. Aditya Birla Money Limited, Represented by its Authorised Signatory L.R. Muralikrishnan Versus The Principal Commissioner of Income Tax, Chennai & Others High Court of Judicature at Madras
05-06-2017 M/s. Aditya Birla Money Limited, Represented by its Authorised Signatory L.R. Muralikrishnan Versus The Principal Commissioner of Income Tax, Chennai & Others High Court of Judicature at Madras
18-05-2017 Sonu Versus Birla Sun Life Insurance Company Limited & Others National Consumer Disputes Redressal Commission NCDRC
28-04-2017 Priyamvada Devi Birla, deceased & Others Versus Ajay Kumar Newar & Others High Court of Judicature at Calcutta
25-04-2017 Susmita Roychowdhury Versus B.M. Birla Heart Research Centre & Others National Consumer Disputes Redressal Commission NCDRC
18-04-2017 Asmitha Microfin Limited & Another Versus M/s. Aditya Birla Finance Limited, Hyderabad In the High Court of Judicature at Hyderabad
24-03-2017 Gopal Chandra Jaiswal Versus M/s. Birla Tyres & Another High Court of Judicature at Calcutta
15-03-2017 V. Birla Minimezh Ezhil Versus The Director of School Education, Chennai & Others Before the Madurai Bench of Madras High Court
20-02-2017 Birla Corporation Ltd V/S Commissioner of Central Excise, Jaipur-II Customs Excise Service Tax Appellate Tribunal Principal Bench New Delhi
13-02-2017 Isha Distribution House Pvt. Ltd. Versus Aditya Birla Nuvo Limited High Court of Judicature at Calcutta
30-01-2017 Nishith Kumar Birla Versus Mashrrat Husain High Court of Judicature at Allahabad
22-12-2016 Birla Medical Technologies Versus Chatrapati Shivaji Maharaj General Hospital Govt. of Maharashtra National Consumer Disputes Redressal Commission NCDRC
19-10-2016 Snigdha Versus Birla Institute of Technology, Mesra, Ranchi through its Vice Chancellor & Others High Court of Jharkhand
19-10-2016 Suraj Birla & Others Versus State of Rajasthan & Another High Court of Rajasthan Jaipur Bench
07-10-2016 Basram Jat Versus Birla Sun Life Insurance Co. Ltd. Through Managing Director & Others High Court of Rajasthan Jaipur Bench
31-08-2016 Birla Sun Life Insurance Co. Ltd. Versus Ashok Kumar Kuthiala National Consumer Disputes Redressal Commission NCDRC
24-08-2016 Aidek Tourism Services Pvt. Ltd. Versus Aditya Birla Nuvo Ltd. High Court of Judicature at Bombay
28-07-2016 Isha Distribution House Private Limited Versus Aditya Birla Nuvo Limited & Another High Court of Judicature at Calcutta
06-07-2016 Birla Sun Life Insurance Company Ltd. Mumbai & Others Versus Leela Devi Rajasthan State Consumer Disputes Redressal Commission Jaipur
15-06-2016 Birla Corporation Ltd. Versus Deputy Labour Commissioner & Another High Court of Madhya Pradesh
05-05-2016 P.D. Goswami Versus Cimmco Birla Ltd. High Court of Madhya Pradesh Bench at Gwailor
25-04-2016 Gurpreet Singh Versus Birla Sun Life Insurance Co. Limited. & Others Union Territory Consumer Disputes Redressal Commission UT Chandigarh
12-04-2016 Laxmibai, Through Her L.Rs. & Others Versus Birla Sun Life Insurance Co. Ltd. National Consumer Disputes Redressal Commission NCDRC
08-04-2016 Vartika Roseline Claudius Versus Birla Sun Life Insurance Company Ltd. & Others High Court Of Judicature At Allahabad Lucknow Bench
07-04-2016 Oil & Natural Gas Corporation Ltd. Versus Birla Techneftegas Exploration Ltd. High Court of Gujarat At Ahmedabad
09-03-2016 Tirathram Shah Charitable Trust & Another Versus M/s. Anjali Birla Sawhney & Others High Court of Delhi
02-02-2016 Commissioner of Income Tax, Kolkata ? I Versus Birla Corporation Limited High Court of Judicature at Calcutta
22-01-2016 Manibhai & Brothers Versus Birla Cellulosic High Court of Gujarat At Ahmedabad
19-01-2016 Omprakash Rammurat Yadav Versus Birla Sun Life Insurance Co Ltd. Maharashtra State Consumer Disputes Redressal Commission Mumbai
14-01-2016 Birla International Pvt. Ltd. Versus Karvy Financial Services Limited High Court of Judicature at Bombay
05-01-2016 Birla Sun Life Insurance Company Ltd. Versus Nitin Kumar Jain Delhi State Consumer Disputes Redressal Commission New Delhi
07-12-2015 In the matter of: Birla Education Trust & Others Versus Birla Corporation Ltd. Company Law Board Principal Bench New Delhi
04-09-2015 Aditya Birla Finance Limited Versus Carnet Elias Fernandes & Another High Court of Judicature at Bombay
31-07-2015 Birla Sun Life Insurance Company Ltd. Versus Dr. Vinesh Senan Kerala State Consumer Disputes Redressal Commission Thiruvananthapuram
22-07-2015 M/s. Birla Sun Life Insurance Co. Ltd. & Another Versus S. Radha Rani & Others National Consumer Disputes Redressal Commission NCDRC
25-06-2015 Birla Corporation Ltd. Versus Bhupen Halder High Court of Judicature at Calcutta
04-06-2015 Narinder Kaur & Others Versus Birla Sun life Insurance Company Limited & Another Punjab State Consumer Disputes Redressal Commission Chandigarh
15-05-2015 Adventz Investments & Holdings Limited & Others Versus Birla Corporation Limited & Another High Court of Judicature at Calcutta
14-05-2015 CIMMCO Birla Ltd., Bharatpur Versus Mahendra Singh & Others High Court of Rajasthan
25-03-2015 Aditya Birla Minacs Worldwide Ltd. Versus Deputy Commissioner of Income-tax -8(1), Mumbai Income Tax Appellate Tribunal Mumbai
13-02-2015 M/s. Birla Cement Works Versus Rajasthan Electricity Regulatory Commission, Jaipur & Another High Court of Rajasthan
02-02-2015 Birla Cotsyn (India) Pvt. Ltd. Versus Wazir Financial Services Pvt. Ltd. & Another High Court of Judicature at Bombay
02-02-2015 Birla Cotsyn (India) Pvt. Ltd. Versus Wazir Financial Services Pvt. Ltd. & Another High Court of Judicature at Bombay
13-01-2015 Birla Sun Life Insurance Co. Ltd. Versus Kiran Prafull Bahadure National Consumer Disputes Redressal Commission NCDRC
06-01-2015 Saurashtra Chemicals Ltd. Birla Sagar Porbandar Gujarat Versus National Insurance Co. Ltd. National Consumer Disputes Redressal Commission NCDRC
08-12-2014 Birla Corporation Ltd. Versus Deputy Commissioner of Income-tax, Circle-6, Kolkata Income Tax Appellate Tribunal Kolkata


LawyerServices is a Premium Legal Tech solution.


Lawyers, Law Firms, Government Departments and Corporates rely on us for, Workflow Automation, Data Aggregation, Timely Updates, Case Management, Intelligent Research, Latest Legal Data Updates and a LOT more!

If you are a legal professional, CONTACT US, in order to see how our UNIQUE solution can benefit your organization.

Features Intro Close Box