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TMI Blog2024 (6) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... ication of various capital items. Retrospective applicability of the amendment in CENVAT Credit Rules, 2004 - HELD THAT:- The issue is no more res integra and covered by the judgement of Hon ble Chhattisgarh High Court in M/S VANDANA GLOBAL LIMITED AND OTHERS VERSUS COMMISSIONER, CENTRAL EXCISE AND CUSTOMS, CENTRAL EXCISE [ 2018 (5) TMI 305 - CHHATTISGARH, HIGH COURT] , whereunder it is observed that ' Section 37(2)(xvia) provide for the credit of duty paid or deemed to have been paid on the goods used in, or in relation to, the manufacture of excisable goods'. The impugned orders are devoid of merit and accordingly the same are set aside - Appeal allowed. - DR. D.M. MISRA, MEMBER (JUDICIAL) AND MRS R BHAGYA DEVI, MEMBER (TECHNICAL) Mr. Sunil Kadam with Mr. Rahul Patil, Company Representatives for the Appellant Mr. H. Jayathirtha, Superintendent (AR) for the Respondent ORDER These two appeals are filed against respective Orders-in-Original passed by the learned Commissioner of Central Excise, Belgaum. Since common issues involved, both these appeals are taken up together for hearing and disposal. 2. Briefly stated the facts of the case are that the appellants are engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Tribunal in the case of Mangalam Cements Ltd. Vs. CCE, Jaipur-I [2018(360) ELT 737 (Tri. LB)] also held that Cement and steel used in the structural items are admissible as inputs and decided the issue in favour of the assessee; therefore the impugned orders are liable to be set aside. 4. Per contra, learned AR for the Revenue reiterated the findings of the learned Commissioner. 5. Heard both sides and perused the records. 6. The short issue involved in the present appeals for consideration is: whether the appellant is entitled to avail cenvat credit on the MS angles, MS channels, MS beams, MS joists, MS plates etc. which were used in the fabrication of various machineries, support structures, platforms for machineries and equipments etc. used in the factory. 7. Undisputedly, the appellants during the relevant period used the aforesaid inputs in their factory in the fabrication / manufacture of various equipments, machineries, plants etc. and support structures holding the capital goods. The learned Commissioner in the impugned order following the judgment of the Larger Bench of this Tribunal in Vandana Global Ltd. s case decided the issue against the appellants holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dment cannot be treated as clarificatory. M/s. Thiruarooran Sugars also considered the issue as to the effect and fundamental value of the evidentiary statement made by the Finance Minister dealing with an amendment in the budget speech. 7 . Section 37 of the Central Excise Act, 1944; for short, the Act , is a rule making power. Section 37(2)(xvia) provide for the credit of duty paid or deemed to have been paid on the goods used in, or in relation to, the manufacture of excisable goods. Section 37(2A) of the Act - The power to make rules conferred by clause (xvi) of sub-section (2) shall include the power to give retrospective effect to rebate of duties on inputs used in the export goods from a date not earlier than the changes in the rates of duty on such inputs. Though the power to make rules include the power to give retrospective effect, while doing so the provision under consideration is neither made retrospective nor could it be treated as one. 8 . We are in complete agreement with the ratio of Mundra Ports (supra) and M/s. Thiruarooran Sugars (supra) on all fours. 9 . Resultantly, we answer the questions formulated in these appeals in favour of the assessees and against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the integral part of the capital goods is applied, the assessees, in these cases, should get the benefit of Cenvat credit, as they fall within the scope and ambit of both Rule 2(a)(A) and 2(k) of the 2004 Rules. 45. For the foregoing reasons, we answer the questions, in all the three (3) appeals, which are set forth above, in favour of the assessees and against the Revenue. 8.3. Also the Larger Bench of the Tribunal taking note of the various High Courts judgment in the case of Mangalam Cement Ltd. Vs. CCE, Jaipur-I [2018(360) ELT 737 (Tri. LB)] held as follows:- 8 . Applying the user test of capital goods as enunciated by the Hon ble Supreme Court in the case of Rajasthan Spinning Weaving Mills (supra), the Hon ble Madras High Court in the case of India Cements Ltd., reported in 2012 (285) E.L.T. 341 (Mad.), 2014 (305) E.L.T. 558 (Mad.), 2014 (310) E.L.T. 636 (Mad.) and 2015 (321) E.L.T. 209 (Mad.) has extended the Modvat benefit on Cement and steel items, considering the same as capital goods under Rule 57Q of the erstwhile Central Excise Rules, 1944. Since, said rule is pari materia with the present Rule 2(a) of the CCR, 2004, the disputed goods, in the present case, should b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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