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2013 (9) TMI 316 - AT - Central ExciseCenvat Credit in respect of MS angles, Channels, CTD bars, sheets etc. used for fabrication and erection of supporting structures of the machinery – Held that:- During the period from November 1994 to August 1995, the definition of the term capital goods as given in Explanation to Rule 57Q covered machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about in any change in any substance for manufacture of final products, the components, spare parts and accessories of the above-mentioned machines, machinery, plant, equipment, apparatus, tools or appliances used for aforesaid purpose, mould and dies, generating sets, and weight bridges used in the factory of manufacturer w.e.f. 16/3/95 some more items were added to the definition of capital goods adding clause (d) and (e) to the definition of capital goods. It is only by Notification No. 14/1996-CE (NT) dated 23/7/96 that the above definition of capital goods was fully replaced by new definition mentioning specific Chapter heading and items and new definition did not contain the word ‘plant’. Thus, there is a factual mistake in para 7 of the final order dated 23/3/12 which mentions that w.e.f. 16/3/95, the above definition was amended and in the new definition, the general expression machines, machinery, plant, equipment, apparatus, tools and appliances used ‘for’ was not there and instead the definition of capital goods covered the goods of certain specific headings of the Central Excise Tariff and their components, spare parts, accessories, as, through out during the period of dispute, it is the definition of capital goods in Rule 57Q, as the same stood during the period prior to 23/7/96, which would be applicable and since that definition covered the word ‘plant’, in view of the judgment of the Apex Court in the case of Jawahar Mills Ltd. vs. CCE, Coimbatore [1999 (4) TMI 153 - CEGAT, NEW DELHI], the MS Angles, Channels, Sections etc. used for supporting structures of the machinery would be eligible for Cenvat credit. Subsequently these judgments were overruled by Larger Bench judgment of the Tribunal in case of Vandana Global Ltd. v. CCE, Raipur reported in 2010 (4)TMI 133 – CESTAT, NEW DELHI (LB),wherein it was held that MS Angles, channels, bars, plates etc. used for erecting supporting structures are not eligible for Cenvat credit either as inputs or as capital goods, as these items are neither covered by the definition of capital goods nor the same can be treated as input used for the manufacture of capital goods, as the supporting structure are capital assets fixed to the earth, not capital goods. But during period prior to 23/7/1996, to which this case pertains, the position was different and the definition of capital goods included plant also. In view of the above discussion - (a) the portion of the impugned order disallowing Modvat credit in respect of MS Angles, Channels, Sections, Bars, etc. used for supporting structures for machinery for the period prior to 16/03/1995, is set aside and the portion of the order disallowing the Modvat credit in respect of these items for the period w.e.f. 16/3/1995 is upheld; - (b) Out of Modvat credit demand of Rs. 1,02,237/- and Rs. 42,605/-, the demand of Rs. 41,775/- and Rs. 38,815/- respectively is upheld. - The appeal is, therefore, partly allowed with consequential relief
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