TMI Blog2018 (9) TMI 1987X X X X Extracts X X X X X X X X Extracts X X X X ..... oresaid decision of the Larger Bench was considered by the Hon ble Court of Gujrat in the case of MUNDRA PORTS AND SPECIAL ECONOMIC ZONE LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE CUSTOMS [ 2015 (5) TMI 663 - GUJARAT HIGH COURT ] wherein it was observed that the amendment made on 7.7.2009 cannot be held to be retrospective and as such applicable only prospectively. The controversy can be laid to rest by making a reference to the decision of the Apex Court in the case of COMMISSIONER OF CENTRAL EXCISE, JAIPUR VERSUS M/S RAJASTHAN SPINNING WEAVING MILLS LTD. [ 2010 (7) TMI 12 - SUPREME COURT ], 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 erstwhile Central Excise Rules, 1944. In the said judgment, the Apex Court has referred to the user test evolved by the Apex Court in the case of COMMISSIONER OF C. EX., COIMBATORE VERSUS JAWAHAR MILLS LTD. [ 2001 (7) TMI 118 - SUPREME COURT ], which is required to be satisfied to find out whether or not particular goods could be said to be capital goods. When ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Central Excise Act, 1944 which was claimed on inputs such as Angles, Channels, Chequired Coils, CTD Bar, GC Sheet, HR Sheet/Plate, Joist, MS Beam, MS Flat, MS Rod, MS Rounds, Plate TMT Bar etc. used in the manufacture of specified Capital goods mainly on the ground that emergent goods manufactured out of impugned Iron and Steel Materials are supporting structures and also held that the Adjudicating Authority has erred by placing reliance on utilization statement certified by the Chartered Engineer to hold the aforesaid goods as specified Capital Goods . The Learned Advocate further submits that for the expansion of existing DRI Unit (Sponge Iron Unit), by setting up of Captive Power Plant of 14 MW and setting up of SMS Unit, they purchased capital goods on payment of Central Excise Duty and claimed Cenvat Credit thereon. It is his submission that for the sake of economy, faster implementation of the project and also owing to technical compulsions, some of the capital goods required for the said projects were manufactured in house captively. For the aforesaid purpose they purchased 746.016 MT of Iron and Steel materials classifiable under Chapter 72 during the period O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of M.S. Billets. The Appellant further states that Slag Separator (Deslagging Spoon) manufactured out of M.S. Round/Rod, is used for deslagging of molten materials in the process of manufacture of M.S. Billets i.e. for breaking and removal of accumulated Slag Layer floating over the molten metal while being tapped out of the Induction Furnace. The breaking / removal of slag is required very often for releasing the gas accumulations under the surface of the molten material to avoid busting of red hot molten layer of slags causing accident. The process of breaking and removing red hot molten Slag is an integral part of the process of manufacture of M.S. Billet. 6. It is observed from the SCN that the steel materials have been used to make gigantic steel structures to participate in the manufacturing process of Sponge Iron and M.S. Billet carried out by them and without them the manufacture process could not be completed. The issue to be decided in this appeal is regarding availability of Cenvat credit on various structural items such as Angles, Channels, Chequired Coils, CTD Bar, GC Sheet, HR Sheet/Plate, Joist, MS Beam, MS Flat, MS Rod, MS Rounds, Plate TMT Bar etc. which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat credit. 9. The above view also stands fortified by the judgment of (i) Hon ble High Court of Madras in the case of Thiru Arooran Sugars Vs. CESTAT [2017 (355) ELT 373 (Mad)]. (ii) Hon ble High Court of Chhatisgarh in Vandana Global Ltd. 2018(16) GSPL 462 (Chattisgarh) decided in favour of the assessee. The relevant paras are reproduced. 4 . In the light of the contents of the impugned order of the Tribunal and submissions of the assessee and the Revenue following substantial questions of law are formulated for consideration : (A) Whether the terms capital goods excludes the structures embedded to earth? (B) Whether the goods like angles, joists, beams, bars, plates, which go into fabrication of such structures are not to be treated as input used in relation to their final products as inputs for capital goods, or none of the above? (C) Is the amendment brought in CENVAT Credit Rules, 2004 as per Rule 2 of the CENVAT (Amendment) Rules, 2009 retrospective in nature considering is it clarificatory to be applied to all matters which arise before 7-7-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
