9911796707
TMI Blog2016 (12) TMI 833X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case are that the appellant are engaged in the manufacture of sugar & molasses chargeable to Central Excise duty. During the period under consideration, the appellant took cenvat credit on various items namely M.S. Bar, M.S. Plate, Shapes & Sections, H.R. Plates etc. and other items falling under chapter 38, 39 & 76 angles, beams and channel etc. by alleging that these items were used by the appellant for repair and maintenance of plant and machinery or for modification of the existing plant of the existing machinery. The department was of the view that these items neither covered by the definition of capital goods as given in Rule 2(a) of the Cenvat Credit Rules, 2004, nor are covered by the definition of input as given in Rule 2(k) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 597 (P&H) held that channels and angles, joint of iron steel used for installation of batch vessel or essential plant and machinery and are eligible for credit as capital goods. The Hon'ble Madras High Court in Thiru Arooran Sugar - 2015-TIOL-1734-HC-Mad.CX held that credit on M.S. Plates, angles, channels utilised in construction / erection of plant were eligible for credit. The High Court observed that the principle laid-down by the Hon'ble Supreme Court in Rajasthan Spinning and Weaving Mills Ltd. (supra) is applicable to such situation. 7. We note that the Tribunal has been consistently following the ratio that the steel items when they are used in fabrication of capital goods and their accessories inside the manufacturer premises are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the said decision of the Larger Bench was considered by the Hon'ble Gujarat High Court in the case of Mundra Ports & Special Economic Zone Ltd. 2015 (04) LCX0197, wherein it was observed that the amendment made on 07.07.2009 cannot be held to be clarificatory and as such would be applicable only prospectively. 15. We find that the controversy can be laid to rest by making a reference to the decision of the Apex Court in the case of CCE, Jaipur vs. Rajasthan Spinning & Weaving Mills Ltd. -2010 (255) ELT 481(SC), wherein the Hon'ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The credit stands allowed in the light of Rule 57Q of the ers ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
