9911796707
TMI Blog2023 (12) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed the demand of ineligible Cenvat credit amounting to Rs. 1,54,11,925/-, along with interest and penalty. 2. M/s Steel Authority of India Ltd. ('Appellant') is engaged in the business of manufacturing iron and steel products. During the underlying period, the Appellant cleared excisable goods manufactured by it on payment of excise duty leviable thereon, by utilizing CENVAT Credit of inputs, capital goods and input services in accordance with the CENVAT Credit Rules, 2004 ('CCR, 2004'). During this period, the Appellant procured various structural steel items (plates falling under Chapters 69, 72, 73, 84 and 85) as part of modernization of the plant as well as their existing unit. These 'plates' were used for fabrication of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them in the reply to the SCN wherein it was categorically indicated that the SCN was issued without taking into account the supplier invoices evidencing the Chapter Headings under which the plates are classifiable and received by the Appellant. Accordingly, credit of Rs. 1,28,90,681 ought to have been held as eligible and to such extent the impugned order ought to be set aside. 5. As regards the remaining credit availed on goods falling under Chapters 72, 73 and 74, the Appellant has furnished a certificate from the Chartered Engineer certifying the end use of certain plates. As per such certificate, the plates falling under Chapter 72 and 73 were used for the following purposes: a. Part of equipment of motor and gear box, coke oven gas, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (16) G.S.T.L. 462 (Chhattisgarh). In this decision it was held that goods used in fabrication of structures embedded to earth should be treated as inputs for capital goods and Cenvat Credit ought not be denied . In this regard, reliance is also placed on the following decisions: a. CCE v. Mangalam Cement Ltd. 2017-VIL-927-CESTATDEL- CE [Pg. 18-23 of the Compilation] b. Mundra Ports & Special Economic Zone Ltd. v. CCE &Cus., 2015 (39) S.T.R. 726 (Guj.)[Pg. 52-54 of the Compilation] Surya Alloys v. UoI, 2014 (305) E.L.T. 47 (Cal.)[Pg. 55-56 of the Compilation 7. The Appellant further submits that the term 'inputs' is defined under Rule 2(k) of the CCR, 2004. The said term has a wide coverage and practically includes all goods used i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -10 of the Compilation] b. CCE, Jaipur v. Rajasthan Spinning & Weaving Mills Ltd., 2010 (255) ELT 481 (SC)[Pg. 11-13 of the Compilation] c. CCE, Coimbatore v. Jawahar Mills Ltd. - 2001 (7) TMI 118 - SC[Pg. 14-17 of the Compilation] d. CCE v. Mangalam Cement Ltd. 2017-VIL-927-CESTATDEL- CE [Pg. 18-23 of the Compilation] e. Corporate Ispat Alloys Ltd. v. CCE, Bolpur, 2023 (11) TMI 674 - CESTAT Kolkata [Pg. 24-27 of the Compilation] f. Commr. of CE, Cus& ST, Rourkela v. Singhal Enterprises (P) Ltd., 2018 (1) TMI 620 - CESTAT Kolkata[Pg. 28-30 of the Compilation] g. Thiru Arooran Sugars &Ors. v. CCE&Ors., 2017 (7) TMI 524 - Madras High Court[Pg. 31-49 of the Compilation] h. India Cements Ltd. v. CCE, 2015 (3) TMI 661 - Madr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 2(a) of the CCR, 2004. We agree with the submission of the Appellant. In the impugned order credit has been denied on many items which are classifiable under Chapter 84 and 85 also. They fall under the definition of 'capital goods' under Rule 2(a) of the CCR, 2004 and hence they are entitled for the credit as 'Capital goods' 13. As regards the remaining credit availed on goods falling under Chapters 72, 73 and 74, we observe that the Appellant has furnished a certificate from the Chartered Engineer certifying the end use of certain plates. We observe that the impugned order has erroneously held that the 'plates' are used in factory shed, construction of building foundation etc. and dismissed the CE certificate furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de coverage and practically includes all goods used in the manufacture of final products. Reliance is placed on the decision of the Hon'ble High Court in the case of Hindustan Zinc v. UoI, 2008 (228) ELT 517 (Raj.) wherein it has been categorically stated that where any particular process is integrally connected without which manufacturing is not viable, then the goods which are used therein will be eligible for availment of credit. The impugned order has relied upon Notification No. 16/2009-CE (NT) dated 7.7.2009 which amended explanation 2 to Rule 2(k) of the CCR, 2004 to specifically exclude angles, channels, TMT bards used for construction of factory and laying of foundation or making of structures for support of capital goods. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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