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2016 (12) TMI 17 - CESTAT HYDERABADCENVAT credit - TMT bars / MS bars / TOR steels etc. - construction of RCC (Reinforced Cement Concrete) structures which are cement pillars / columns required for installation of machinery in the course of expansion/modernization of their factory by enhancing the capacity of production - Held that: - the subject items have been used for making supporting structures, parts, accessories for capital goods which are highly essential for carrying out the manufacturing process in the factory. Further the period involved is also prior to 07/07/2009. The issue whether credit can be availed on MS channels, bars, angles etc. was analysed in the case of India Cements Ltd. Vs. CES TAT [2015 (3) TMI 661 - MADRAS HIGH COURT], wherein the Hon'ble Madras High court has held that MS angles, channels etc. used for supporting structures is eligible for credit - The second contention of the Department is that the explanation which restricts the use of MS items for fabrication introduced in the definition of inputs is applicable retrospectively as laid by Larger Bench of this Tribunal in the case of Vandana Global Ltd. [2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)] - following the ratio laid in the above judgments, I hold that the denial of credit is unjustified. The availment of credit wrongly by taking 100% credit in the same financial year - Held that: - taking note of the fact that the appellant is eligible for balance 50% of credit in the subsequent year though wrongly availed in the same financial year, I hold that the same would amount to only a procedural lapse/ premature availment of credit. Therefore the appellant cannot be denied the credit but is liable to pay interest upon the amount so wrongly availed during the period of irregular availment of credit. The impugned order disallowing the credit on subject items is set aside - The demand of interest on the irregularly taken CENVAT credit of ₹ 18,83,061/- is sustained - The penalties are set aside - appeal disposed off - decided partly in favor of appellant.
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