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2020 (11) TMI 540 - AT - Central ExciseCENVAT Credit - input - input services - Cement, TMT Bar, Beam, Angle, Channels & Joist etc. - inward transportation services - HELD THAT:- The Ld. Adjudicating authority had confirmed the demand of recovery of Cenvat credit on items such as Cement, TMT Bar, Beam, Angle, Channels & Joist by relying on the judgment of the Larger bench of the Tribunal in the case of VANDANA GLOBAL LTD. VERSUS CCE [2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)],. However, the said judgment, as rightly pointed by the Ld. CA has been quashed by the Hon’ble High Court of Chattisgarh. Also, the Hon’ble Calcutta High Court had in the case of SURYA ALLOY INDUSTRIES LTD. VERSUS UNION OF INDIA [2014 (9) TMI 406 - CALCUTTA HIGH COURT] had disapproved the judgment of the Larger Bench. Thus, the Cenvat credit of the items along with Service tax credit of inward transportation for such items is an eligible Cenvat credit upto 06/07/2009 and hence we are of the view that the appeal to this extent ought to be allowed. The usage of various iron and steels items is to be analysed in light of the decision of the Hon’ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE, JAIPUR VERSUS M/S RAJASTHAN SPINNING & WEAVING MILLS LTD. [2010 (7) TMI 12 - SUPREME COURT]. In this judgement, the Hon’ble Supreme Court has referred to the ‘user test’ outlined in the case of COMMISSIONER OF C. EX., COIMBATORE VERSUS JAWAHAR MILLS LTD. [2001 (7) TMI 118 - SUPREME COURT], which lays down the ratio in determining whether particular goods could be categorized as capital goods or not. As regards the period post 07/07/2009, it is seen from the records that the Appellant has already reversed a substantial amount of Cenvat credit being ₹ 16,29,837/-. Since the issue therein was in respect of interpretation of law, we are of the considered view that there cannot be any deliberate suppression, as alleged in the impugned order. Appeal disposed off.
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