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TMI Blog2019 (4) TMI 1590X X X X Extracts X X X X X X X X Extracts X X X X ..... under the definition of capital goods under rule 2(a) of Cenvat Credit Rules, 2004. The period of dispute is December 2001 to April, 2003. Three different show cause notices were issued on 04.12.2002, 30.03.2004 and 29.04.2004 covering the aforesaid period. It appeared to Revenue that the credit on the aforementioned items is wrongly availed by way of misconstruction of provisions of the Cenvat Credit Rules and credit so availed does not appear to be admissible. The show cause notices were adjudicated vide Order-in-Original Nos. 67/2003 dated 24.02.2003, 311/2004 dated 05.07.2004 and 459/2004 dated 15.09.2004 confirming disallowance of CENVAT Credit as alleged by revenue and the same were upheld by the learned Commissioner (Appeals) vide O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra) where the issue before the larger Bench was whether on Cement and Steel items used for foundation for installation of machinery, which is embedded to earth, the assessee is entitled to avail Cenvat Credit on steel items in terms of Rule 2(k)/2(a) of the Cenvat Credit Rules, 2004, or not, the question has been decided in favour of the assessee. The larger Bench held as follows: 9. On perusal of definition of 'input' extracted above, it would reveal that all the goods (excepting light diesel oil/high speed diesel oil and motor spirit) are considered to fall under such definition, when 'used in or in relation to manufacture of final products', whether directly or indirectly, and whether contained in the final product or not. The only c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rules. The relevant paragraph in the said order is extracted herein below :- "44. the facts of this case, we have to conclude that MS structural, which support the plant and machinery, which are, in turn, used in the manufacture of sugar and molasses are an integral part of such plant and machinery. The assessee has clearly demonstrated that structurals as well as foundations, which are erected by using steel and cement are integral part of the capital goods (i.e., plant and machinery), as they hold in position the plant and machinery, which manufactures the final product. Therefore, in our opinion, whether the "user test" is applied, or the test that they are the integral part of the capital goods is applied, the assessees, in these cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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