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TMI Blog2022 (5) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... T Credit as laid down by the Hon ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE, JAIPUR VERSUS M/S RAJASTHAN SPINNING WEAVING MILLS LTD. [ 2010 (7) TMI 12 - SUPREME COURT] . Following the said decision, the Hon ble Madras High Court in the case of M/S. THIRU AROORAN SUGARS, M/S. DALMIA CEMENTS (BHARAT) LTD. VERSUS CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, THE COMMISSIONER OF CENTRAL EXCISE [ 2017 (7) TMI 524 - MADRAS HIGH COURT] , has held that iron and steel items and cement used for erection of foundation and support structures would also come within the ambit of the definition of input so long as it satisfies the user test . In the facts of the present case, it is not in dispute that various steel it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the manufacture of goods which are installed in the factory. However, the audit team was not satisfied with regard to the availment of credit and subsequently, a Show Cause Notice dated 17.02.2016 (SCN) was issued to propose disallowance of credit on above items. 2.2 The Ld.Assistant Commissioner vide Order dated 19.02.2018 confirmed the proposal made in the SCN confirming the central duty demand and also imposed equivalent penalty which was challenged by the assessee in the first appeal. 2.3 The Ld.Commissioner (Appeals), vide appeal Order 29.04.2019, reiterated the allegations made in the SCN and upheld the demand without considering the various grounds taken in the appeal. In para 5.3 of the impugned appeal order, the Ld. Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... void of merit. 6. I find that the Hon ble Chhattisgarh High Court has set aside the decision of the Tribunal s Larger Bench in the case of Vandana Global as reported in 2018 (16) GSTL 462 (Chhattisgarh). I further observe that the principle of user test also need to be considered while deciding the entitlement of assessee to avail CENVAT Credit as laid down by the Hon ble Supreme Court in the case of CCE Vs. Rajasthan Spinning Weaving Mills Limited 2010 (255) ELT 481 (SC). Following the said decision, the Hon ble Madras High Court in the case of Thiru Arooran Sugars, has held that iron and steel items and cement used for erection of foundation and support structures would also come within the ambit of the definition of input so lon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the two judgments, is that, as long as it is shown that the component and/or accessory is an integral part of the capital goods, (which, in turn, fall within the scope and ambit of the expression capital goods , referred to in Rule 2(a)(A)(i) of the 2004 Rules,) they would also qualify as capital goods. 44. In the facts of this case, we have to conclude that MS structurals, 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 structural 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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