TMI Blog2023 (11) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... or cenvat credit in terms of Rule 2(l)/2(k) of the Cenvat Credit Rules, 2004. Thus, the Angles, Channels, Beams, Joists, Sheets, Plate, Coils etc used in the manufacture of furnace equipment and furnace structure, raw material handling system and pollution control equipment, are eligible for credit as inputs - the demand confirmed in the impugned order is not sustainable. As the demand itself is not sustainable, the question of demanding duty or imposing penalty does not arise. Appeal allowed. - HON BLE MR. R. MURALIDHAR MEMBER ( JUDICIAL ) And HON BLE MR. K. ANPAZHAKAN MEMBER ( TECHNICAL ) None , for the Appellant Shri P. K. Ghosh , Authorized Representative for the Respondent ORDER PER K. ANPAZHAKAN : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osal based on the written submissions available on record. In their submission, the appellant stated that the iron and steel products were used for furnace equipment and furnace structure, raw material handling system and pollution control equipment. They have availed Cenvat credit on the Angles, Channels, Beams, Joists, Sheets, Plate, Coils etc, as 'inputs' as the same were used in the manufacture of capital goods. Accordingly, they submits that the Angles, Channels, Beams, Joists, Sheets, Plate, Coils etc used for furnace equipment and furnace structure, raw material handling system and pollution control equipment, are eligible for credit as 'inputs, used in the manufacture of capital goods. Accordingly, they prayed for allowi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ger Bench in the case of Vandana Global Ltd. (supra). 14. The Larger Bench decision in Vandana Global Ltd. s case (supra) laid down that even if the iron and articles were used as supporting structures, they would not be eligible for the credit. Considering the amendment made w.e.f. 7-7-2009 as a clarification amendment and hence to be considered retrospectively. However, we find 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 = 2015 (39) S.T.R. 726 (Guj.), wherein it was observed that the amendment made on 7-7-2009 cannot be held to be clarificatory and as such would be applicable only prospectively. 15. We fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... User Test to the facts in hand, we have no hesitation in holding that the structural items used in the fabrication of support structures would fall within the ambit of Capital Goods as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat credit. 4. I also find support from the decision of the Hon ble High Court of Karnataka in the case of Commissioner of Central Excise, Bangalore-II v. SLR Steels Ltd. reported as 2012 (280) E.L.T. 176 (Kar.). The relevant paragraphs are reproduced:- 7. A perusal of the aforesaid provision makes it very clear though storage tanks may be immovable property and the pollution control equipment are included within the definition of capital goods , input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pport of capital goods is constructed and steel and cement is used for such support, the assessee is not entitled to the benefit of cenvat credit on the duty paid on such cement and steel. Therefore, there is no ambiguity in any of these provisions. When once a storage tank and pollution control equipment constitutes capital goods and any raw material purchased for construction of those goods, the duty paid could be utilized as a cenvat credit by the assessee notwithstanding the fact that the storage tank is an immovable property. Therefore, the appellate authority committed a serious error firstly in holding that the storage tank is an immovable property and secondly, on the ground that it cannot be bought and sold in the market, the crite ..... X X X X Extracts X X X X X X X X Extracts X X X X
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