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2020 (9) TMI 300 - AT - Central ExciseCENVAT Credit - Iron Steel, G.I. Flat, MS Beam, MS channel, Flats, Joist, old and used plates, New MS Plates, PPGI profiles sheets etc. used in erection of EOT crane (during the gestation period) for the new factory - steel structures, nut and bolt, electrical items, 122 KV, Gantry column, 132 KV Isolator, earthing wire, etc. utilised in fabrication of the power house station - rejection of cenvat credit on the ground that these items are falling under chapter heading 72 and 73, and thus not specified under Rule 2A(a) of Cenvat Credit rules. HELD THAT:- It is admitted fact that the items have been utilised in the factory of production for erection of new machinery, of EOT crane, utilised in fabrication of the power house station, which are capital goods and are essential for setting up of the factory which manufactures dutiable goods - Although, the appellant has taken credit on these items as capital goods, but actually these are inputs which have been utilised in fabrication of capital goods, including the support structures for erection of machinery. This issue has been settled in favour of the appellant-assessee by the decision of Madras High Court in the case of M/S. INDIA CEMENTS LTD. VERSUS THE CUSTOM, EXCISE AND SERVICE TAX & THE COMMISSIONER OF CENTRAL EXCISE, [2015 (3) TMI 661 - MADRAS HIGH COURT] and also by the Hon’ble Gujarat High Court in the case of MUNDRA PORTS AND SPECIAL ECONOMIC ZONE LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE & CUSTOMS [2015 (5) TMI 663 - GUJARAT HIGH COURT] wherein it has been held that inputs and input service used in the fabrication of capital goods are eligible inputs for the purpose of cenvat credit - The appellant is held entitled for the cenvat credit. Refund claim - case of appellant is that they have debited the cenvat credit under dispute under protest, at the time of investigation and the said fact is also witnessed in the order-in-original, that credit was reversed amounting to ₹ 71,94,972/- - HELD THAT:- The respondent –Department is directed to refund the amount of cenvat credit under dispute in cash, in terms of Section 142(5) of CGST Act, 2007. Appeal allowed - decided in favor of appellant.
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