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2024 (1) TMI 135 - AT - Central ExciseCENVAT Credit - MS angles, channels, beams etc. - denial of part credit for the reason that the these goods are used in the manufacture of supporting structures of capital goods, and that as per Explanation to Rule 2(k) is ineligible. HELD THAT:- The said Explanation was introduced by Notification No.16/2009-CE (NT) dated 07.07.2009 only. The decision rendered by the Larger Bench of the Tribunal in Vandana Global Ltd. [2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)] has been set aside by the Hon’ble High Court of Chhattisgarh as reported in [2018 (5) TMI 305 - CHHATTISGARH, HIGH COURT]. Further, the Hon’ble Jurisdictional High Court in the case of Thiru Arooran Sugars [2017 (7) TMI 524 - MADRAS HIGH COURT] has held that the Explanation does not have a retrospective application and also that user test has to be applied. As per the Annexure to the show cause notice, three invoices No.274/17.09.2009, 3009/02.02.2010 and 3100/02.02.2010, fall beyond the period of 07.07.2009 - the credit on these invoices are disallowed - Appellant is eligible for the credit in respect of all invoices which are issued prior to 07.07.2009. Appeal allowed in part.
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