TMI Blog2018 (7) TMI 1208X X X X Extracts X X X X X X X X Extracts X X X X ..... dit allowed - appeal allowed - decided in favor of appellant. - Appeal No. E/531/2009, Appeal No. E/402/2009 - FINAL ORDER No. A/30697-30698/2018 - Dated:- 3-7-2018 - Mr. M.V.Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical) Shri B. Venugopal, Advocate for the Appellant Smt B.V.Siva Naga Kumari, Commissioner/AR for the Respondent ORDER [ Order Per : M. V. Ravindran ] 1. These two appeals are filed against Order-in-Original No. 06/2009 (RS) dated 26.02.2009. Since both the appeals i.e., E/531/2009 E/402/2009 filed by the assessee and the Revenue are against the same Order-in-original, they are being disposed of by a common order. 3. The relevant facts that arise for consideration a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of industrial structures for erection of various industrial equipment. T-angles are used in fabrication of industrial structures, TMT rods and bars are used for foundation for installation of industrial structures, GP sheets are used in roof of plant and machinery, welding electrodes are used in fabrication and erection work. Cement is used as foundation for erection of plant and machinery and profile sheets are used for roof of plant and machinery; Simon-30 used in grouting of foundation, cement and steel flashings are used for erection of roof of plant and machinery and profile sheets are used in erection of roof. It is his submission that the adjudicating authority has incorrectly denied the CENVAT credit as these items are used in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... responded to the various communication addressed by the Range Officer seeking their explanation as to how these items were to be considered as used in relation to the manufacturing activity. It is her submission that the assessee had not furnished any details and most of the items on which CENVAT credit is allowed are construction and erection materials and appeared to be used in civil works, erection of plant and are not used for manufacturing finished goods. She has relied upon the decision of judgment of the Apex Court in the case of Saraswati Sugar Mills [2011 (270) ELT 465 (SC)] and Madras Cements Ltd [2010 (254) ELT 3 (SC)] for the proposition that the CENVAT credit cannot be availed on capital goods unless it is established that ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions and the contents of the defence replies were got verified by the jurisdictional Central Excise Officers. If that should be so, we find that the adjudicating authority has factually appreciated the entire issue, then arrived at a conclusion to drop the proceedings in respect of CENVAT credit availed to the tune of ₹ 3.31 Crores. We find that the Revenue s reliance on the judgment of the Tribunal in the case of Vandana Global Ltd will not carry the case any further as the said judgment of the Larger Bench has been struck down by the Hon ble High Court of Chattisgarh in various tax appeals as decided on 13.09.2017 (unreported). The said judgment of the Larger Bench in the case of Vandana Global Ltd has been struck down by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for the reason that the said Explanation cannot restrict the scope and ambit of the main provision, i.e., Rule 2(k)(i). Explanation 2 cannot be read in a manner that it constricts, the scope and ambit of the main provision, i.e., Rule 2(k)(i). Further in Para 44 also, held as under: 44. In the facts of this case, we have to conclude that MS structurals, which support the plant and machinery, which are, in turn, used in the manufacture of sugar and molasses are an integral part of such plant and machinery. The assessee has clearly demonstrated that structurals as well as foundations, which are erected by using steel and cement are integral part of the capital goods (i.e., plant and machinery), as they hold in position the plant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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