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TMI Blog2013 (7) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of CENVAT credit. The original authority denied the benefit to the assessee and ordered recovery of CENVAT credit of Rs.49,729/- under Rule 14 of CCR, 2004 read with Section 11A of the Central Excise Act, 1944. It also imposed a penalty of Rs.45,000/- on the party under Rule 15 of the CCR. In an appeal filed by the aggrieved party, the learned Commissioner (Appeals) granted the benefit to the appellant (assessee). Hence the present appeal of the Revenue. 2. Learned SDR submits that the aforesaid items stood excluded from the ambit of the definition of 'input' by virtue of an explanation to Rule 2(k) and further that the said items were held to be outside the purview of the definition of 'capital goods' by the Tribunal's Larger Bench in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... integral part of plant and machinery and therefore the MS angles, plates and rounds used for fabrication of the structural support should be held to be accessories. Learned counsel further points out that the benefit of apex Court's ruling was not available to the Tribunal's Larger Bench when the case of Vandana Global Ltd. (supra) was decided. 4. After giving careful consideration to the submissions, I have found force in the arguments of the learned counsel. The ratio of the decision of apex Court is found to be squarely applicable to the facts of the instant case. The apex Court was seised of the question whether the steel plates and m.s. channels used in the fabrication of chimney would fall within the purview of Sl. No.5 of the table ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essary portions) of the CCR, 2004, reproduced below: ''RULE 2.?Definitions - In these rules, unless the context otherwise requires, - (a)''capital goods'' means :- (A) the following goods, namely :- (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, [heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804] of the First Schedule to the Excise Tariff Act; (ii) ....................................... (iii) Components, spares and accessories of the goods specified at (i) and (ii); (iv) ......................................... (v) . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent case are perfectly analogous to those of Rajasthan Spinning & Weaving Mills Ltd. (supra). It is not in dispute that ms angles, plates, etc., were used to fabricate structural support for machinery which was used for manufacturing excisable goods. It is, again, not in dispute that the machinery is squarely covered by clause (i) of Rule 2(a)(A) of the CCR, 2004. The immediate question is whether the structural support for the machinery could be treated as 'capital goods'. Indeed, it should be held to be an integral part of the machinery and hence to be covered by clause (i) ibid. If that be so, as held by the Hon'ble Supreme Court in the aforesaid case, the plates, angles, etc., used for fabricating structural support are liable to fall w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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