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TMI Blog2010 (10) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... but the appellants are not entitled for the Cenvat credit on welding electrodes which are used for fabrication of structural supports to the machinery as held by the Larger Bench of this Tribunal in the case of Vandana Global (2010 -TMI - 76147 - CESTAT, NEW DELHI (LB)) wherein it was held that structures do not qualify as capita goods. Hence the demand on welding electrodes which are being used for fabrication of supporting structures is confirmed and the demand on welding electrodes used for fabricating of plant and machinery is dropped, penalty is not leviable in these cases. Accordingly, the penalties are not liable to be imposed, interest is leviable for delayed payment as held by the Hon'ble Supreme Court in the case of SKF Ltd. - Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants preferred appeals before the lower appellate authority who confirmed the demand but dropped the penalty and interest holding that the matter involves interpretation of Rules. Aggrieved from the orders of the lower appellate authorities, both the parties are in appeals (appellant for confirmation of demand and Revenue for dropping the penalty and interest). 3. The learned Advocate for the appellants submits that the issue has been framed by the adjudicating authority in the adjudication order that whether the welding electrodes used for fabrication/installation of capital goods which are further used for manufacture of final product i.e., sugar and molasses. In this case, it is no doubt that these welding electrodes were being us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are further used for manufacture of final product, qualify as input or capital goods or not ? It is no doubt that the appellants are entitled for availment of Cenvat credit on welding electrodes which have been used for fabrication/installation of the plant and machinery which are capital goods as per Rule 2(k) of Cenvat Credit Rules, 2004, Explanation 2, as held by the Hon'ble High Court of Rajasthan in the case of Hindutan Zinc Ltd. (supra) but the appellants are not entitled for the Cenvat credit on welding electrodes which are used for fabrication of structural supports to the machinery as held by the Larger Bench of this Tribunal in the case of Vandana Global (supra) wherein it was held that structures do not qualify as capita goods. H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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