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2018 (9) TMI 493 - AT - Central ExciseCENVAT Credit - inputs/capital goods - wire rods, MS plate, HR Plate etc - Held that - Such items have been procured and used by the appellant for fabrication of foundations and other supporting structures for capital goods. Cenvat Credit on such items has been consistently allowed by the Tribunal in various cases - appeal allowed - decided in favor of appellant.
Issues:
Availability of Cenvat Credit on structural items like MS Plates, HR Coils, Channels, Angles for fabrication of foundations and supporting structures for capital goods. Analysis: The appellant availed Cenvat Credit on items like wire rods, MS plate, HR Plate, etc., which the Department denied as they were not considered capital goods or inputs under the Cenvat Credit Rules, 2004. The lower Authority relied on the Vandana Global case and denied the credit. The appellant challenged this decision, arguing that the Vandana Global case is no longer valid law due to a subsequent judgment by the Hon'ble Gujarat High Court in the Mundra Ports & Special Economic Zone Ltd. case. The appellant also cited the Tribunal's consistent allowance of Cenvat Credit in similar cases, following the Singhal Enterprises Pvt Ltd. case upheld by the Hon'ble Chhattisgarh High Court. The Department justified its decision based on the Vandana Global case. However, after hearing both parties and examining the records, it was noted that the issue revolved around the availability of Cenvat Credit on structural items used for fabricating foundations and supporting structures for capital goods. The Tribunal had consistently allowed such credit in various cases, and the Vandana Global decision was deemed no longer valid law in light of the Hon'ble Gujarat High Court's ruling. Considering the Tribunal's consistent stance on the matter, it was concluded that the issue was no longer open to debate and had been settled in favor of the appellant. As a result, the impugned order denying the Cenvat Credit was set aside, and the appeal was allowed.
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