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TMI Blog2010 (7) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... lating to the denial of credit on clean flo and chemicals amounting set aside - penalty sustained by Commissioner (Appeals) is set aside - E/206/2007-SM(BR) - 747/2010-SM(BR)(PB) - Dated:- 5-7-2010 - Shri M. Veeraiyan, Member (T) REPRESENTED BY : Shri B.L. Narasimhan, Advocate, for the Appellant. <?xml:namespace prefix = st2 /> Shri I. Baig, SDR, for the Respondent. [Order (Oral)]. - This is an appeal against the order of the Commissioner (Appeals) No. 214-C.E./BPL/2006 dated 21-11-2006. 2. Heard both sides. 3. The relevant facts, in brief, are that the appellants are the manufacturer of cement clinker and cement. They have been availing Cenvat credit on various items. The present disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or maintenance and repairs of the plant and machinery as well as for fabrication of various structures. Therefore, the issue is clearly covered in favour of the department by the Larger Bench of the Tribunal in the case of Vandana Global Ltd. cited supra. 6. As regards the credit of Clean flo chemicals, he seeks decision on merits of the case. 7. I have carefully considered the submissions from both sides. The issue relating to eligibility of credit on steel plates, angles, and channels used for fabrication of various structures is no more res integra. 8. The Larger Bench of the Tribunal in the case of Vandana Global Ltd. considered the following questions : (a) Whether the term "capital goods" can include plan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal goods." (c) It reiterated the need for the nexus between inputs and final products in or in relation to process of manufacture as a condition for eligibility to credit as held by the Hon'ble Supreme Court in the case of Maruti Suzuki Ltd. v. CCE [2009 (240) E.L.T. 641 (S.C.)]. (d) It held that amendment to Explanation 2 to Rule 2(k) of Cenvat Credit Rules, 2004 is a clarificatory amendment and that the same is applicable retrospectively. (e) It was also held that the foundation and supporting structures are neither inputs nor components, spares and accessories of machinery, nor have they been listed for such inclusion in the definition of capital goods. With the above findings and observations, the question referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of Cement/Cement Clinker or for generation of electricity used for manufacture of Cement Clinker. We have fabricated the following items out of steel purchased during the period : (i) Coal Handling System (ii) Boiler (iii) E.S.P. (iv) Chimney's (v) Water Treatment Plant (vi) Clinker Cooler Breaker (vii) Roller Press (viii) Over-head Cable Support etc." 10. Based on the submissions of the appellants in the reply, there is a clear finding of the original authority that these items are used for maintenance or for fabrication of the structures. Under these circumstances, I do not find any justification for remanding the matter to the original authority, I hold that the appellants are not eligible fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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