TMI Blog2020 (9) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. Rule 2(k) of CCR defines, inputs as all goods used in the factory by the manufacturer of the final product . Accordingly, the appellant is entitled to cenvat credit on MS Plates - appeal allowed - decided in favor of appellant. - Excise Appeal No.52201 of 2019 (SM) - FINAL ORDER NO.50760/2020 - Dated:- 2-9-2020 - MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) Shri Shashwat Arya, Advocate for the appellant. Ms. Tamnna Alam, Authorized Representative for the respondent. ORDER The appellant is in appeal against the impugned order-in-appeal dated 18.06.2019 passed by the Commissioner (Appeals) disallowing the cenvat credit of ₹ 6,45,158/- (Cenvat ₹ 6,32,508 + education cess ₹ 12,650/-) on M.S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. which fall under Chapter 84 of CETA and are covered under the definition of capital goods. The platforms made of MS Plates was essential to use and operate such capital goods, as without the same, fabrication of precision final products, would not be possible. Thus, the MS Pates are also covered under the definition of capital goods as its components, spares accessories . 6. Accordingly, the appellant had availed cenvat credit of such MS Plates as inputs, which were used in fabrication of final products as well as for platforms used as accessory to capital goods. 7. In the light of above, show cause notice dated 25.06.2008 was issued to the appellant, proposing demand of cenvat credit availed on such MS Plates along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s before this Tribunal, amongst others, the following grounds. 12. Ld. Counsel for the appellant urges that issue is no more res integra, that for such fabrication works, machines such as lathe machine, welding machine, etc. were used by the appellant, which are covered under the definition of capital goods could be efficiently used only on a plain leveled surface. Thus, MS Plates being used as platform, was an ccessory to the capital goods of the appellant, and thus is admissible to Cenvat credit in terms of Rule 2 (a) of Cenvat Credit Rules. The issue has been settled by the Hon ble Supreme Court in the case of CCE Vs. Rajasthan Spinning Weaving Mills Ltd. 2010 (255) ELT 481 (SC), where by applying the user test, it was held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in support structure of capital goods, and therefore, cenvat credit is not admissible on MS Plates that were used for fabrication of platforms. The decision in the case of Vandana Global Ltd. (supra) was overruled by the Hon ble Chhattisgarh High Court in the case of Vandana Global Ltd. Vs. CCE Order dated 13.09.2017 [Para 5-7]. Further, in the previous decisions of Mundra Ports Special Economic Zone Ltd. Vs. CCE 2015 (39) STR 726 (Gujarat) and Thiru Arooran Sugars Vs. CESTAT, Chennai 2017 (355) ELT 373 (Madras), Courts have also overruled the Larger Bench decision of Vandana Global (supra) and unequivocally held that the amendment to Rule 2(k) introduced w.e.f. 7.7.2009 would only have a prospective effect: 14. Further, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k) of Credit Rules for the relevant period, Cenvat Credit is admissible on all goods, used in or in relation to manufacture of final products or for any other purpose, within the factory of production. Further, Explanation 2 to Rule 2(k), inputs includes goods used in the manufacture of capital goods which are further used in the factory of the manufacturer . Thus, when impugned order does not dispute the fact of usage of such items as inputs in the fabrication work of various plants and machinery, the criteria of Rule 2 (k) stands fulfilled, and cenvat credit is admissible. Thus, in absence of any allegation, finding or evidence of fraud, suppression, etc., penalty is not imposable. 18. Accordingly, ld. Counsel prays for allowin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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