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2018 (12) TMI 1531 - AT - Central ExciseCENVAT Credit - capital goods or not - TMT Steel and PP Cement - credit reversed on being pointed out - demand of interest for delayed reversal of credit - imposition of penalty - Held that:- The fact is not under dispute that the disputed goods were used by the appellant in the fabrication of structure of capital goods namely sugar mill machinery, boiler house, power generation and power house, which are essential plants for ultimate manufacture of the final product - The period in dispute is from April 2006 to December 2007, which was covered under the un-amended definition of input (effective up to 7th July 2009). Under such un-amended provisions of Rule 2 (k) of the rules, there were restrictions for not allowing the Cenvat benefit on those structural items - Since specific restrictions were brought into the definition clause only with effect from 7th July 2009, Cenvat benefit on such disputed goods cannot be denied for the period prior to such effective date. Retrospective applicability of the definition of input contained in Rule 2 (k) of the Rules - Held that:- Though the Larger Bench of this Tribunal, in the case of Vandana Global Limited [2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)], has upheld the views expressed by Revenue, but the Hon’ble Chhattisgarh High Court in the case of said appellant M/S VANDANA GLOBAL LIMITED AND OTHERS VERSUS COMMISSIONER, CENTRAL EXCISE AND CUSTOMS, CENTRAL EXCISE [2018 (5) TMI 305 - CHHATTISGARH, HIGH COURT] by relying on the Gujarat High Court judgment in the case of Mundra Ports & Special Economic Zone Ltd. [2015 (5) TMI 663 - GUJARAT HIGH COURT], has held that in absence of any specific mention about the retrospective application of the definition of input, the same should be considered as prospective in effect. Credit cannot be denied - demand set aside - appeal allowed - decided in favor of appellant.
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