TMI Blog2006 (1) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... ures. The learned Commissioner in his order has not taken into consideration the decisions cited by the appellants on the ground that they are not relevant in terms of Rule 2 of the Cenvat Credit Rules, 2002. A careful study of the Modvat/Cenvat provisions right from its inception in 1986 reveals a very gradual trend of liberalized interpretation. In dismissing the case laws cited by the appellants, the Commissioner is trying to put the clock back. The definition of Capital Goods as per Rule 2(b) of Cenvat Credit Rules is very broad. The components, spares and accessories of the goods specified at Rule 2(b)(i) (ii) are also defined as Capital Goods . In the present case, the appellant is a manufacturer of drugs who uses various machineries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 17,39,721/- (ii) HDPE Pipes 3,38,866/- (iii) HR Stainless Steel Plates 16,78,564/- (iv) Cable Trays Pipes Carrying Bridges 3,16,233/- (v) Other goods Technological Structures 29,02,746/- Total 69,76,130/- The Commissioner in the impugned order has stated that the appellant's case for allowing Cenvat Credit should be examined with reference to the definition and scope given for the terms Capital Goods in Rule 2 of Cenvat Credit Rules, 2002. According to him, a plethora of decisions cited by the appellants in their favour are irrelevant. He has held that MS angles, Flats, Channels, Beams, etc. are classified under Chapters 72 and 73 of the Central Excise Tariff. Therefore these cannot be taken as Capital Goods being not falling under the Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Commissioner in his order has not taken into consideration the decisions cited by the appellants on the ground that they are not relevant in terms of Rule 2 of the Cenvat Credit Rules, 2002. A careful study of the Modvat/Cenvat provisions right from its inception in 1986 reveals a very gradual trend of liberalized interpretation. In dismissing the case laws cited by the appellants, the Commissioner is trying to put the clock back. The definition of Capital Goods as per Rule 2(b) of Cenvat Credit Rules is very broad. The components, spares and accessories of the goods specified at Rule 2(b)(i) (ii) are also defined as Capital Goods . The Rule 2(b)(i) (ii) are as follows :- (b) capital goods means - (i) All goods falling under Chapt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (T)] = [2002 (50) RLT 809 (CEGAT - Ban.)] 2. Hot Rolled Coil in plate form used in the manufacture of storage and processing tanks which in turn are used as capital goods for the manufacture of paper eligible to credit as input. * Star Paper Mills Ltd . v. CCE, Meerut [1999 (107) E.L.T. 241 (T) 3. Structural Supports for Conveyor, eligible for credit as capital goods *MS Rods and Angles and Boards used as supporting structures in manufacture of EOT Crane and winch are eligible to Modvat credit. * Bellary Steels Alloys Ltd . v. CCE, Belgaum [Final Order Nos. 1902, 1903, dated 6-12-2004 passed by the CESTAT in Appeal Nos. E/1109/02 and E/1191/02 - 2005 (180) E.L.T. 92 (T). Prism Cement Ltd . v. CCE, Bhopal [2005 (185) E.L.T. 264 (Tri. - Del.) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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