2018 (8) TMI 406 - AT - Central Excise

CENVAT Credit - inputs - iron and steel items like sheet, section, angles channels guarder plates etc. - denial of credit on the ground that the same have been used as supporting structurals - Held that - This Bench in their own case DHAMPUR SUGAR MILLS LTD., AMIT SHARMA, DGM (COMML.) VERSUS COMMISSIONER OF CENTRAL EXCISE, MEERUT-II (NOW HAPUR) 2018 (4) TMI 1080 - CESTAT ALLAHABAD wherein the Cenvat Credit in respect of identical items was allowed - credit cannot be denied - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Denial of Cenvat Credit on iron and steel items used as supporting structurals
- Interpretation of law declared by the Larger Bench of the Tribunal
- Comparison of earlier orders and relevant case law

Analysis:
1. The appeals involved the denial of Cenvat Credit on iron and steel items such as sheet, section, angles, channels, guarder plates used as supporting structurals by M/s Dhampur Sugar Mills Ltd. The issue was whether such items were eligible for credit based on the law declared by the Larger Bench of the Tribunal in the case of Vandana Global vs. Commissioner of Central Excise, Raipur, where it was held that credit would not be admissible for said items.

2. The advocate for the appellants argued that the items in question were used for the fabrication of capital goods, which should make them eligible for Cenvat Credit. She referenced an earlier order by the same Bench where credit for identical items was allowed, albeit for a different period. The contention was that the use of these items for fabrication should qualify for credit, as per the law interpreted in previous orders.

3. The Tribunal noted that the Revenue's reliance was solely on the decision of the Larger Bench in the Vandana Global case. However, it was pointed out that this decision had not been approved by the Hon'ble Gujarat High Court in the case of Mundra Ports & Special Economic Zone Ltd. vs. CCE & Cus. The Tribunal, considering its earlier decision in the same assessee's case and the judgment of the Gujarat High Court, set aside the impugned orders. The appeals were allowed, granting consequential relief to the appellants.

This comprehensive analysis of the judgment highlights the issues involved, the arguments presented, and the legal interpretation leading to the decision in favor of the appellants.