TMI Blog2017 (1) TMI 1742X X X X Extracts X X X X X X X X Extracts X X X X ..... r (Technical) Ms. Rinki Arora, Advocate for the Appellant Sh. M.R. Sharma, DR for the Respondent ORDER The present appeal challenges the Order-in-Appeal dated 26.10.2010 passed by the Commissioner (Appeals), Jaipur. The dispute is regarding the disallowance of Cenvat credit taken by the appellant on Cement and TOR Steel Bars. These items are said to have been used in structural foundation to support the power plant, which itself is capital goods and are used in or in relation to the manufacture of the final products Cement- in their factory. The credit stands disallowed both, by the Original Authority as well as by the Commissioner (Appeals) in the impugned order. 2. With the above background, I heard Smt. Rinki Aror ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 2015 (39) S.T.R. 726 (Guj.) held that no retrospective effect can be given to the Explanation 2 to Rule 2 (k) of Cenvat Credit Rules. The learned Counsel also relied on various decided cases to emphasis that the Steel items used in fabrication of various technological structures which are closely connected with various capital goods as essential accessories and support structures are eligible for Cenvat credit. These are discussed later of this order. 4. Ld. DR, opposing the above contention submitted that these items have been used for Civil Construction and cannot be considered as used for fabrication of capital goods. Accordingly, he prayed that the impugned order be upheld. 5. The dispute is with reference to whether Cenvat cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th reference to appeal Nos. E/820/2012 and E/60114/2013. I note that the usage of TOR steel and cement to create various RCC structures, foundations, pillars, columns and civil structures have been verified by the Jurisdictional officers. The appellants claim that these are not civil constructions like buildings etc. is mis-leading. It is clear that cement alongwith TOR steel with water, sand and other additions are used for creation of permanent civil assets like buildings, floors, columns, pillars etc. Certain machinery is placed on these structures does not make these civil structures as components or accessories of said machinery. Similarly, using RCC various structures are created by the appellants for passage of raw material and stora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailable in the impugned order dated 04/01/2012 is revealing. The cement is mainly used in the construction of kiln piers raft/footing, columns, slabs for foundation, foundation for raw mill hoper below the ground, columns in the hoper building, RCC columns, retaining wall in cold dump, columns and wall in cooler building etc. As can be seen all these are civil constructions, though with reference to the overall expansion of production capacity by the appellant. Use of cement in these structures cannot be considered as used cenvatable inputs in the fabrication or manufacture of any capital goods. The same reasoning applies to TOR Steel which is used alongwith cement in creating these structures. Accordingly, we hold that the credit on cemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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