TMI Blog2010 (8) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... ds in terms of Rule 3 of Cenvat Credit Rules, 2002. Show cause notices were issued periodically covering the periods from March, 2003 to November, 2004 proposing denial of Cenvat credits on the following items and proposing penalties :- (a) Welding Electrodes (8311) (b) M.S. Plates, Shape Section, H.R. Plate, Steel Sheets, Article of Iron Steels, Roof sheets of iron, S.S. Plates, Carbon Steel bar, Flat Bar, Channel, Angles, H.R. Slide, Slitting etc. (c) CAF Jointing Sheets, Asbestos packing, Steam Jointing, Jointing Sheets, D.E. White Metal, Metalic Graphite, Style Packing etc. (d) White lead (e) Winding Wire, Winding, Red led and Break Liner, Coils, Copper Wire Aluminium Wire Copper Sheet, etc. (f) Component of P.D. Pumps. 4. The Original Authority passed the orders denying the Cenvat credit, ordering recovery of equal amount of duty along with interest and imposing equal amount of penalty (show cause notices included proposal for denial of credit on some more items, which were allowed by the Original Authority. The list mentioned above relates to the items on which the credit stands denied by the Original Authority and upheld by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pumps P.D. Pumps are eligible for Cenvat credit and since components of P.D. Pumps are to be treated as capital goods, the cenvat credit is available. He relies on the decision of the Tribunal in the case of Commissioner of Central Excise v. Punjab Chemical Pharm. Ltd. reported in 2000 (116) E.L.T. 461 (Tribunal). 5.2 He also submits that as the dispute relates to interpretation of legal provisions of Cenvat Credit Rules, no mens rea can be attributed to the appellants and there is no justification for imposition of penalty. 6.1 Ld. DR made the following item-wise submissions :- (a) Welding Electrodes He relies on the decision of the Tribunal in the case of Vikram Cement reported in 2009 (242) E.L.T. 545 (Tri.-Del.). (b) M.S. Plates, Shape Section, H.R. Plate, Steel Sheets, Article of Iron Steels, Roof Sheets of Iron, S.S. Plates, Carbon Steel bar, Flat Bar, Channel, Angles, H.R. Slide Slitting etc.: He submits that the items referred to are basically used for fabricating supporting structures and the same are not eligible for credit as held by the Larger Bench of the Tribunal in the case of Vandana Global Ltd. [2010 (253) E.L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c Ltd. reported in 2008 (228) E.L.T. 517 which approved the ratio of the Larger Bench of the Tribunal in the case of Jawahar Mills Ltd. - 1999 (108) E.L.T. 47 and disapproved the decision of the Larger Bench of the Tribunal in the case of Jaypee Rewa Plant cited supra. The Hon ble High Court also held that the decision of the Kolkata Bench of the Tribunal in the case of SAIL v. C.C.E., Ranchi - 2008 (222) E.L.T. 233 relying on the decision of the Larger Bench in the case of Japyee Rewa Plant cannot be held to have been approved by the Hon ble Supreme Court even though the SLP filed by the party against the said decision has been dismissed. In view of the above, as the Hon ble High Court of Chhattisgarh has held that welding electrodes used in repair and maintenance of plant and machinery are inputs as defined under Rule 2(g) of the Cenvat Credit Rules, 2002. In view of the above decision, appeal of the party in so far as the same relates to welding electrodes deserve to be allowed. M.S. Plates, Shapes and Sections, H.R. Plates, Steel Sheets, Articles of Iron Steel, Roof sheets of iron, S.S. Plates, Carbon Steel Bar, Flat Bar, Channel, Angles, H.R. Slide Slitting etc. 8.2.1 Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... findings and observations, the question referred to Larger Bench were answered as follows : 49. In the light of the foregoing findings, we answer the questions referred to the Larger Bench as follows :- (a) The terms capital goods has been defined in the Cenvat Credit Rules, which in turn have been framed under the rule making powers conferred under Section 37(2) of the Act. The said Section refers to credit of duty paid on goods used in, or in relation to the manufacture of excisable goods. Hence, capital goods defined in the Cenvat Credit Rules in the context of providing credit of duty paid, have to be excisable goods. Whether a particular plant or structure embedded to earth can be considered as excisable goods or not has to be determined in the light of the decisions of the Hon ble Supreme Court on the issue, which is no longer res integra. (b) Goods like cement and steel items used for laying foundation and for building supporting structures cannot be treated either as inputs for capital goods or as inputs in relation to the final products and therefore, no credit of duty paid on the same can be allowed under the Cenvat Credit Rules for the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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