TMI Blog2015 (4) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... uld also be covered by the definition of capital goods and would be admissible for cenvat credit. However, as regards denial of Modvat Credit from period January 1997 to March 1997 in appeal E/2015/09, since during this period the definition of capital goods, as it existed during period prior to 23.07.1996 has been substituted by a new definition which covered the goods of certain specified chapter headings and as such for this period the iron and steel items would be eligible for credit as inputs only if the same had been used for manufacture of capital goods or their parts and would not be eligible for credit if the same had been used as foundation or supporting structure for machinery, the matter would have to be remanded to the Original Adjudicating Authority after examining the appellants' plea on the question regarding their usage. The cenvat credit for this period would be admissible only in respect of that quantity of iron and steel which had been used for fabricating sugar mill machinery or its components. As regards denial of cenvat credit in respect of nickel screen and denial of cenvat credit in respect of gunny bags, the credit has been denied only on the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the definition of input nor are covered by the definition of capital goods. The total cenvat credit disallowed in this appeal is ₹ 18,88,658/- and beside this penalty of ₹ 15 lakh has been imposed. In appeal No. E/2106/09, the dispute is in respect of admissibility for modvat credit of various items of iron and steel of MS Angles, Channels, Joists shapes and sections, HR Plates, HR Coils etc., which according to the appellant had been used either as parts of the machinery or as supporting structure for machinery. The credit of ₹ 25,24,741/- for the period from September, 1995 to June, 1996 in respect of these items was disallowed and its demand was confirmed on the ground that these items are neither covered by the definition of input nor covered by the definition of capital gods, beside this penalty of ₹ 10 Lakh has been imposed. 1.1 In appeal No. E/2017/09, the period of dispute is July 1995 and the disputed items for the cenvat credit are the steel items mentioned above, copper welding wire and also gunny bags for declaration. The cenvat credit in respect of gunny bags was disallowed on the ground that the same was not covered by the declaration filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for supporting structure, would be eligible for Modvat Credit, that in any case, all these items as certified by the Chief Engineer of the appellants' factory, have been used either as part of the Sugar Mill Machinery or in some cases as supporting structure, that in view of this, the denial of credit in respect of steel items for the period prior to 23.07.1996 is not correct, that the denial of modvat credit in respect of Nickel Screen and bags is incorrect as the required declaration has been made, that in any case since, the receipt of these items has not denied, merely for not filing the declaration, the credit cannot be denied and in this regard he relied upon the judgment in the case of JVM Tools Pvt. Ltd vs CCE Pune reported in 202 (144) 561 (Tri. Mum.) which is based on Larger Bench Judgement of the Tribunal in the case of Kamakhya Steels Pvt. Ltd vs CCE Meerut reported in 2002 (121) ELT 247 (Tri. LB), that as regards the Modvat credit of about ₹ 10,85,705/- taken in respect of various steel items during January 1997 to March 1997 period and which is the subject matter of dispute in the appeal no 2015/09, steel items as certified by the Chief Engineer had been u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts judgment in the case of Scientific Engineering Houses Pvt. Ltd. vs Comm. of Income Tax reported in AIR-1986-SC-338, wherein it has been held that the term 'Plant' covers whatever apparatus is used by a businessman for carrying on his business including all the goods and chattels fixed or movable, live or dead which he keeps for permanent employment in a business. Following the Tribunal's judgment in the case of Shakumbari Sugar and Allied Industries Ltd. vs CCE Meerut-I (Supra), we hold that denial of Modvat Credit in respect of steel items during March 1995 to August 1995 period in appeal no. E/2015/09 and denial of Modvat Credit during period from September, 1995 to June 1996 in appeal no. E/2016/06 and denial of Modvat credit for July 1995 in appeal no. E/2017/09 is not correct and as such the impugned order has to be set aside. However, as regards denial of Modvat Credit from period January 1997 to March 1997 in appeal E/2015/09, since during this period the definition of capital goods, as it existed during period prior to 23.07.1996 has been substituted by a new definition which covered the goods of certain specified chapter headings and as such for this period ..... X X X X Extracts X X X X X X X X Extracts X X X X
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