TMI Blog2008 (6) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... E/1036/2008 - 656/2008-EX/(PB) - Dated:- 17-6-2008 - Justice S.N. Jha, Shri M. Veeraiyan, JJ. REPRESENTED BY : Shri Ravi Raghavan, Advocate, for the Appellant. Shri H.K. Thakur, Jt. CDR, for the Respondent. [Order per : M. Veeraiyan, Member (T)(for the Bench)]. Heard both sides on the stay petition. 2. The relevant facts, in brief, are as follows :- (a) The applicant is a manufacturer of goods like sponge iron ingots, billets falling under Chapter 72 of the Central Excise Tariff Act, 1985. The applicant received duty paid items like angles, joists, beam, channels, bars, flats, oxygen gas, welding electrodes, thermal insulation etc., and used them for fabrication of various structures relating to power plants, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f dues as per the impugned order. 4. Learned DR submits that the term capital goods cannot be given a such a wide meaning and include construction of plants; the credit on items like steel items and cement which go into manufacture of fabrication of immovable structure is not eligible. The decisions taken relating to the period when the term 'capital goods included plant can not be relied upon to interpret liberally and extent the credit to the disputed items. 5.1 We have carefully considered the submissions from both the sides. The cenvat scheme, in the initial stages, envisaged allowing credit of duty paid only on the inputs; it was later extended to duty paid on capital goods, however the entire plant of the factory may not qualif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 2 to Rule 2(g) of CCR, 2002 inputs includes goods used in the manufacture of capital goods which are further used in the factory of the manufacture. Various plants have been installed for manufacture of CR/GP coils/sheets and tubes such as cold rolling mill, pickling line tube mill, DG sets annealing line, EOT cranes, chimney, storage tanks, pollution control / effluent treatment units, utilities like air, steam gas, water etc. Therefore, the disputed items are in the nature of components to the said plants as without the columns, beams, cellars, trenches, tunnels, roofing etc. the plant cannot exist and hence, are components of plant. Therefore, invoking Explanation 2 to Rule 2(g) of CCR, credit on cement and steel in any case is admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods like angles, joists, beam, channels, bars, flats which go into fabrication of such structures can be treated as inputs in relation to their final products as inputs for capital goods, or none of the above? (c) Whether the credit can be allowed in respect of goods like angles, joists, beam, channels, bars, flats which go into fabrication of such structures and plant? 7. Record may be placed before the President for constituting the Larger Bench. 8. Meanwhile, in view of the fact that first issue is before the Larger Bench in the case of M/s. Nicholas Piramal (India) Ltd. and in respect of second issue, the matter is prima facie decided in favour of the appellant in their own case, pre-deposit of duty and penalty as per ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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