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TMI Blog2017 (9) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... it Fabric and Processed Fabrics falling under CH heading 60.05, 60.04 and 54.07 of the first Schedule to the CETA, 1985. During the course of audit, it was observed that the appellant wrongly availed Cenvat credit of Rs. 5,58,909/- during the period January 2007 to April 2007 on TMT Bars, Angles, Channel, HR Coils, CTD Bar and other items, which were used in fabrication of structures for support of Capital goods. Accordingly, show cause notice dt 04.3.2011 was issued to them for recovery of the credit along with interest and proposal for penalty on the appellant company and personal penalty on the Director. On adjudication, the demand was confirmed with interest; penalty of equal amount imposed on the company and personal penalty of Rs. 3,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er been pleaded that the Cenvat credit claimed for the period prior to this will be covered within the decision of the Larger Bench in the case of Vandana Global Ltd. (supra). 14. The Larger Bench decision in Vandana Global Ltd.'s case (supra) laid down that even if the iron and articles were used as supporting structures, they would not be eligible for the credit. Considering the amendment made w.e.f. 7-7-2009 as a clarification amendment and hence to be considered retrospectively. However, we find that the said decision of the Larger Bench was considered by the Hon'ble Gujarat High Court in the case of Mundra Ports & Special Economic Zone Ltd., 2015 (04) LCX0197 = 2015 (39) S.T.R. 726 (Guj.), wherein it was observed that the amendment ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f "Capital Goods" includes, components, spares and accessories of such capital goods. Accordingly, applying the "User Test" to the facts in hand, we have no hesitation in holding that the structural items used in the fabrication of support structures would fall within the ambit of "Capital Goods" as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat credit." 7. In view of above, credit on M.S. Angles, Channels, Beams, TMT Bars, CTD Bars H. R. Sheets etc. used for fabrication of capital goods and also for structural support of capital goods are eligible to CENVAT credit. 8. In the result, the impugned order is set-aside and the appeal is allowed with consequential relief, if any, as per law. (Ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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