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TMI Blog2020 (3) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... MBER (JUDICIAL) AND HON BLE MR. ANIL G. SHAKKARWAR, MEMBER(TECHNICAL) Ms. S. Vishnupriya, Advocate For the Appellant Ms. T. Usha Devi, DC (AR) For the Respondent ORDER PER : SULEKHA BEEVI C.S Brief facts of the case are that the appellants are engaged n manufacture of sugar and are registered with the department. During the course of verification of records, it was noticed that they have availed cenvat credit of duty paid in respect of angles, channels and plates which are used for construction of plant and supporting structures of machinery during the period from September 2008 to December 2010. The department was of the view that the appellant is not eligible to avail credit on these items for which the SCN was issued proposing to disallow the credit and to recover the same along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalty. Aggrieved by such order, the appellant is now before this Tribunal. 2. On behalf of the appellant, Ld.Counsel Ms. Vishnu Priya appeared and argued the matter. She explained the details of the credit availed on each items as under : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no loss of sugarcane juices, water, steam and syrup, ropes are used in the pumps to arrest the leakages through the gaps. Kindly see the decision in: (f) ROPES: To ensure that there is no loss of sugarcane juices, water, steam and syrup, ropes are used in the pumps to arrest the leakages through the gaps. Apart from this, ropes are also used in the valves which are used to regulate the flow of steam, water, juice, syrup and other chemicals. (g) JOINTS: Joints are used to join various pipelines, valves, pumps and vessels together for conveying the juice, syrup, water and steam etc. These are integral to the pipelines and are used as a part of the pipelines in the factory of production. As the pipelines, valves, pumps and vessels are made of steel, while joining these(metal surfaces) together, flexible media such as rubber or other flexible joints are used as gasket in between the pipes, valves, pumps and vessels, etc to ensure the leak proof flow of fluids inside the above materials. (h) STRUCTURAL MATERIAL: The structural material of the evaporator and the juice heaters are not supporting structures of capital goods. They are used to provide platforms, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l s Larger Bench in Vandana Global Ltd. [2010-TIOL-624-CESTAT-DEL-LB] which has been set aside by the Hon ble High Court of Chhattisgarh vide its judgment reported in 2018 (5) TMI 305. 4. Ld. AR. Ms. T. Usha Devi appeared and argued for the department. She adverted to the explanation in the definition of input which was introduced w.e.f. 7.7.2009 and submitted that the structural materials have been used by the appellants for laying foundation as well as support structures of capital goods. On such facts, they are not eligible for credit. Ld. AR relied upon the judgment of Hon ble High Court of Chhattisgarh in Vandana Global (supra) and submitted that the effect of amendment in Cenvat Credit Rules by adding explanation to the definition of inputs will have only prospective application and not retrospective. That the disallowance of credit for the period after 7.7.2009 is legal and proper. 5. Heard both sides. The credit has been disallowed alleging that the MS items have been used as support structure of capital goods and for laying foundation. On perusal of the records, as well as hearing the submissions put forward by both sides, we do not find that these items have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has held that if a process or activity is so integrally related to the ultimate manufacture of goods so that without that process or activity, the manufacture may, even if theoretically possible, be commercially inexpedient, the goods intended in that process or activity would have to be treated as used in the manufacture. When the Apex Court has interpreted the expression used in the manufacture in the above manner, the scope of the expression used in or in relation to manufacture, whether directly or indirectly in the definition of input in Rule 2 (k) of the Cenvat Credit Rules, 2004 would be much wider. Moreover, Honble Calcutta High Court in the case of Singh Alloys Steel Ltd. vs. Assistant Collector of Central Excise reported in 1993 (66) E.L.T. 594 (Cal.) has held that the definition of input does not depend on what ought to be used but what is commercially expedient to use and expression in relation to used in Rule 57A has wide connotation. Therefore, for determining the eligibility of an item for Cenvat credit, what is relevant is as to whether the activity in which that item is required has nexus with manufacture or in other words without that item the manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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