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TMI Blog2018 (3) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... t of goods like M.S. Plates, M.S. Rounds, M.S. Angles by way of Inputs etc. which had been used as 'Parts/Components for the capital goods' in manufacture of ultimate product. 2. The brief facts of the case are that the appellants were engaged in manufacture of Billets, MS Round Bar and M.S. Roll bar falling under Chapter-72071920, 72141090 and 72042190 respectively of the first schedule to the Central Excise Tariff Act, 1985. The Appellant were also availing the Cenvat credit facility under Cenvat Credit Rules, 2004. The Appellant had taken Cenvat credit on the goods like MS Joints, MS Angles, MS Round, MS Plates, Pipes/Fitting from March 2009 to July 2009 under the provision of Explanation 2 to Rule 2(k) of Cenvat Credit Rules, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eer. (29) Base Plate for repeater foundation. (30) Base Plate reduction gear box. 4. The Appellant submitted that the item of Chapter 72 and Chapter 73 like MS Joint, MS Angle, MS Round, MS Plate etc., on which the Cenvat credit has been taken have been used in the manufacture of capital goods defined under Rule 2(a) of Cenvat Credit Rules, 2004, has been examined by the department and it appeared that the goods manufactured out of cenvated inputs are mainly foundation, support structures and base plates which are not covered under the definition of Capital goods. The Appellant have taken inadmissible Cenvat credit amounting to Rs. 67,08,557/- as Central Excise Duty of Rs. 69,09,550/- during the period from March 2009 to July 2009 in contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fall in Chapter-82, 84 and Chapter 85 of CETA. They can fall in any chapter. The only condition is that they should be part, component or accessory of machinery specified in clause (i)-MF (DR) circular No.276/110/96-TRU dated 02.12.1996. 4. Accordingly, it is clarified that all parts, components, accessories, which are to be used with capital goods of clauses (a) to (c) of Explanation (1) of Rule 57Q and classifiable under any chapter heading are eligible for availment of Modvat credit. 8.3 It was held in CC &CCE- Vishakhapatnam v. Rashtriyalspat Nigam Ltd-2011 (267) E.L.T. 311 (A.P.) at Para-4, since these items are necessarily required for fabrication and structural support without which the manufacturing of the finished goods cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d if the application, seeking waiver of the precondition deposit of duty, is considered afresh by the Tribunal. CC & CCE Vishakapatnam v. App Mills Ltd.,- 2013 (291) E.L.T. 585 (Tri. - Bang.) 4.2 The view of the Tribunal's Larger Bench in the case of Vandana Global Ltd. (supra), was rendered much before the Hon'ble Supreme Court decided the case of Rajasthan Spinning & Weaving Mills Ltd. (supra), was to the effect that the supporting structure for a machinery could not be considered to be part or accessories of the machinery and, therefore, the steel items used for constructing such supporting structure would not be 'capital goods' for the purpose of CENVAT credit. This view of the Larger Bench is no longer valid as it ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty should be levied since the entire issue pertains to bonafide interpretation. The judgment of Megafine Pharma Ltd. v. CCE & ST, Daman (2014-TIOL-1312-CESTAT-AHM) has held that the instant case is that of bonafide interpretation in Para 4:- "4. Heard both sides and perused the case records. It is observed from the annexure to the show cause notice dated 23-12-2009 that the demand period is from June, 2006 to April, 2008 and the issue involved is admissibility of Cenvat credit on doors, false ceiling, compactor for document keeping, sheets for roofing, flooring for finished goods storage area, tube light fittings, etc. Appellant claimed the credit of these items as capital goods under Rule 2(a)(A) of the Cenvat Credit Rules, 2004. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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