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TMI Blog2019 (4) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... 009 whereby a restriction was introduced for use of cement, angles, channels etc. for construction as well as for making support structures of capital goods. From the amendment, it can be safely concluded that prior to the amendment, the eligibility of credit on cement, MS angles, channels etc. used for construction, they are not ineligible. Credit allowed - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... al, Commissioner (Appeals) upheld the same. Hence the appellants are once again before the Tribunal. 2. On behalf of the appellant, ld. consultant Shri R. Parthasarathy submitted that the Tribunal had remanded the matter to relook into the issue on the basis of the decision in Vandana Global Ltd. (supra). The said decision is no longer good law and the Hon'ble High Court of Chattisgah in the case of Vandana Global Ltd. reported in 2018 (16) GSTL 426 (Chatt.) as well as the Hon'ble High Court of Gujarat in the case of Mundra Ports & Special Economic Zone Ltd. Vs. Commissioner of Central Excise - 2015 (39) STR 726 (Guj.) have held that the decision of the Larger Bench of the Tribunal is without proper analysis of the law. It is also subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly to the service provider and not to the appellant who has used the inputs for the construction of kiln. He therefore prayed that credit may be allowed. 3. The ld. AR Shri L. Nandakumar supported the findings in the impugned order. He submitted that the appellant has availed credit on cement, MS angles and channels etc. which are used for construction of kiln. The said items were supplied free of cost by the appellant to the contractor namely CECL. The said contractor has paid service tax under the composition scheme. As per Notification 32/2007-ST dated 22.5.2007 while paying service tax under composition scheme CENVAT credit cannot be availed. Since the appellants have supplied the materials free of cost, they are not eligible to avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;ble High Court of Chattisgarh in the latest decision in the case of Vandana Global Ltd. (supra) wherein it has been held that such items are eligible for credit. Moreover, Explanation (2) to the definition of 'inputs' during the relevant period (April 2009 to June 2009) states that inputs include goods used in the manufacture of capital goods which are further used in the manufacture of factory. An amendment was brought to Explanation (2) with effect from 7.7.2009 whereby a restriction was introduced for use of cement, angles, channels etc. for construction as well as for making support structures of capital goods. From the amendment, it can be safely concluded that prior to the amendment, the eligibility of credit on cement, MS angles, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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