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2022 (5) TMI 565 - CESTAT KOLKATACENVAT Credit - steel items - inputs and capital goods used in connection with the erection and commissioning of the plant - periods in dispute in the present appeals are November 2005-August 2006, December 2006-March 2007, May 2007-March 2008, and January 2009-March 2009 - HELD THAT:- The credit of Rs.25,63,542/- has been disallowed by the Ld. Commissioner (Appeal) merely on the basis of the decision of the Larger Bench in the case of VANDANA GLOBAL LTD. VERSUS CCE [2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)] - The observation made in Para 5.4 of the Appeal Order is examined wherein the Learned Commissioner (Appeals) has relied on the decision of Larger Bench in the case of Vandana Global to disallow the credit. The said decision of the Tribunal’s Larger Bench was challenged by the assessee before the Hon’ble Chhattisgarh High Court in M/S VANDANA GLOBAL LIMITED AND OTHERS VERSUS COMMISSIONER, CENTRAL EXCISE AND CUSTOMS, CENTRAL EXCISE [2018 (5) TMI 305 - CHHATTISGARH, HIGH COURT] wherein the Tribunal’s decision has been set aside on 13.09.2017, i.e. after the date of passing of the appeal order impugned herein. The contentions of the Ld. Advocate is agreed upon that the very basis followed by the Learned Commissioner (Appeals) has now been settled in their favour. In the facts of the present case, it is not in dispute that the various steel items have been used for the purpose of setting up of sponge iron kiln along with the power plant as also certified by the Chartered Engineer have been duly verified by the lower authorities in the adjudication stage. Therefore, applying the “user test” principle, as followed by the various High Courts, the assessee is entitled to avail credit on the steel items. Appeal dismissed - decided against Revenue.
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