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TMI Blog2023 (12) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... f Central Excise, Ghaziabad (Adjudicating Authority) confirming the proposal, made vide the show cause notice dated 19.04.2012 for denial of credit availed on steel items used in the manufacture of support structures for capital goods and PSC Sleepers for laying railway line and order for recovery thereof. Vide the impugned order, the learned Adjudicating Authority has also ordered for recovery of interest and imposition of equivalent penalty. The Appellants had procured several inputs of iron & steel. The procurement and utilization of the said goods within the factory of the Appellants is not in dispute and the said goods were duly accounted for in the books of the Appellants. The said items were utilized by the Appellants for installatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods." 3. The learned Adjudicating Authority vide the impugned Order-in-Original has denied the credit to the Appellant on supporting structures for different capital goods and machineries and passed the order as under:- "(i) I confirm the demand of Rs.1,44,70,167/- (Rs. One Crore Forty Four Lakhs Seventy Thousand One Hundred & Sixty Seven only) representing the amount of inadmissible Cenvat credit availed by M/s Ultra Tech Cement Ltd. (Unit Dadri Cement Works) Village Ranauli Latifpur, Vidyut Nagar, Gautam Budha Nagar (U.P.) on iron and steel materials which were not capital goods under the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mainly based on the decision of Vandana Global (supra) and the same has been categorically overruled by Hon'ble Chhattisgarh High Court vide its Order reported at 2018 (16) G.S.T.L. 462 (Chhattisgarh). The Hon'ble High Court has given a specific finding against the finding of retrospective operation of the amendment to the explanation to Rule 2(k) of Cenvat Credit Rules holding that the said amendment will not be retrospectively applicable. Further, the said finding of the learned Adjudicating Authority is in violation of a catena of decisions of several High Courts and Supreme Court allowing the admissibility of credit on inputs used in the fabrication of support structures of capital goods. 6. We find that the jurisdictional High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before Hon'ble Madras High Court in the case of India Cements Ltd. vs. CESTAT, Chennai, 2015 (321) E.L.T. 209 (Mad.) wherein it was held that the exclusion incorporated in Explanation 2 to Rule 2(k) of the Credit Rules w.e.f. 07.07.2009 cannot be given retrospective effect thereby effectively holding that the finding in Vandana Global (supra) is erroneous. 8. We further find that the Tribunal in the case of Singhal Enterprises Pvt. Ltd. vs. Commr. Of Cus. & C. Ex., Raipur reported at 2016 (341) E.L.T. 372 (Tri.-Del.) held that the steel items have been used for the fabrication of support structures for capital goods. The capital goods utilized by the manufacturers cannot be suspended in mid-air and hence the same require to be suitably sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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