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2024 (6) TMI 294 - AT - Central ExciseCENVAT Credit - inputs - MS angles, MS channels, MS beams, MS joists, MS plates etc. used in the fabrication of various machineries, support structures, platforms for machineries and equipments etc. used in the factory - Retrospective applicability of the amendment in CENVAT Credit Rules, 2004 - HELD THAT - Undisputedly, the appellants during the relevant period used the aforesaid inputs in their factory in the fabrication / manufacture of various equipments, machineries, plants etc. and support structures holding the capital goods. The learned Commissioner in the impugned order following the judgment of the Larger Bench of this Tribunal in VANDANA GLOBAL LTD. VERSUS CCE 2010 (4) TMI 133 - CESTAT, NEW DELHI (LB) decided the issue against the appellants holding that credit is not admissible on the aforesaid inputs used in the fabrication of various capital items. Retrospective applicability of the amendment in CENVAT Credit Rules, 2004 - HELD THAT - The issue is no more res integra and covered by the judgement of Hon ble Chhattisgarh High Court in M/S VANDANA GLOBAL LIMITED AND OTHERS VERSUS COMMISSIONER, CENTRAL EXCISE AND CUSTOMS, CENTRAL EXCISE 2018 (5) TMI 305 - CHHATTISGARH, HIGH COURT , whereunder it is observed that ' Section 37(2)(xvia) provide for the credit of duty paid or deemed to have been paid on the goods used in, or in relation to, the manufacture of excisable goods'. The impugned orders are devoid of merit and accordingly the same are set aside - Appeal allowed.
Issues Involved:
1. Entitlement to avail Cenvat credit on MS angles, MS channels, MS beams, MS joists, MS plates, etc. 2. Retrospective applicability of the amendment in CENVAT Credit Rules, 2004. Summary: Issue 1: Entitlement to avail Cenvat credit on MS angles, MS channels, MS beams, MS joists, MS plates, etc. The appellants, engaged in manufacturing sugar and molasses, availed Cenvat credit on various inputs used in the factory for manufacturing capital goods and support structures. The learned Commissioner, following the judgment in Vandana Global Ltd. Vs. CCE&C, Raipur [2010(253) ELT 440 (Tri. LB)], held that these items do not fall under the definition of inputs and confirmed the demand with interest and penalty. The appellants contended that the principle laid down in Vandana Global Ltd. has been overruled by the Hon'ble High Court of Chhattisgarh in Vandana Global Ltd. Vs. CCE&Cus., Raipur [2018(16) GSTL 462 (Chhattisgarh)], and cited judgments from the Hon'ble Gujarat High Court and Hon'ble High Court of Madras supporting their claim that such items used in the fabrication of capital goods should be treated as inputs. Issue 2: Retrospective applicability of the amendment in CENVAT Credit Rules, 2004 The Tribunal noted that the issue is no longer res integra and is covered by the judgment of the Hon'ble Chhattisgarh High Court in Vandana Global's case, which concluded that the amendment in CENVAT Credit Rules, 2004, effective from 7-7-2009, is not retrospective. The Gujarat High Court in Mundra Ports & Special Economic Zone Ltd. [2015(39) STR 726 (Guj.)] and the Madras High Court in Thiru Arooran Sugars [2017(355) ELT 373 (Mad.)] held that the amendment cannot be treated as clarificatory and thus, cannot operate retrospectively. The Tribunal also referred to the Larger Bench decision in Mangalam Cements Ltd. Vs. CCE, Jaipur-I [2018(360) ELT 737 (Tri. LB)], which upheld that steel and cement used in structural items are admissible as inputs. The Tribunal concluded that the eligibility to duty credit of the disputed goods cannot be denied, either as capital goods or inputs, based on various precedents from the Hon'ble Apex Court and High Courts. Conclusion: The impugned orders were set aside, and the appeals were allowed with consequential relief to the appellants as per law. The Tribunal pronounced the operative part of the order in Open Court on the conclusion of the hearing.
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