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TMI Blog2024 (9) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... as HR coils, HR Sheets, M.S. Angles, M.S. Channels and MS plates during the period 13.09.2008 to October 2009. On adjudication, the demand was confirmed with interest and penalty. Aggrieved by this order, appellants preferred an appeal before the Commissioner (A), who in turn rejected their appeal. Hence, the present appeal. 3. At the outset, the learned advocate for the appellant has submitted that the issue involved in the present case is admissibility of CENVAT credit on the inputs utilised in the manufacture of capital goods meant for construction of new plywood manufacturing unit during the period 13.9.2008 to 20.02.2009. He has submitted that from the RG-23C Part - I records maintained by the appellant, it would show that inputs such as H.R. Steel Coils, Steel Tubes and pipes were used for hydraulic press; M.S. Channels and ISMB for the recent plant. Also, the purpose as mentioned in the worksheet submitted clearly indicates that inputs viz., M.S. Angles, M.S. Plates, ISMB, ISMC, H.R. Coils, H.R. Plates, etc., were used for fabricating expansion tanks, boiler structures, ducting, boiler chimney, cooling tower tanks, gantry for hoists, etc. In support of use of the said mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this appeal is whether the appellants are eligible to avail CENVAT credit on various items such as HR coils, HR Sheets, M.S. Angles, M.S. Channels and MS plates which are in turn utilised in the manufacture of capital goods meant for construction of new plywood manufacturing unit during the period 13.09.2008 to October 2009. 7. We find that that the issue is no longer res integra, as far as the period prior to 07.07.2009 is concerned. It is covered by the judgment of this Tribunal rendered in the case of M/s. BMM Ispat Ltd. vs. CCE, Belgaum vide Final Order No.20270 - 20271 /2024 wherein this Tribunal had elaborately discussed the ratios rendered in the case of Vandana Global Ltd. (supra) and Thiru Arooran Sugars vs. CESTAT, Chennai: 2017 (355) ELT 373 (Mad.) and also decision of Larger Bench of this Tribunal in the case of Mangalam Cement Ltd. vs. CCE, Jaipur-I: 2018 (360) ELT 737 (Tri.-LB), wherein it is held that CENVAT credit on various inputs such as MS Angles, MS Channels, MS beams, MS joists, MS plates, etc., used in the fabrication of various machineries, support structure, platforms for machineries and equipment, etc., used in the factory, is admissible. It is observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 Revenue." 8.2. It followed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital 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 cases, should get the benefit of Cenvat credit, as they fall within the scope and ambit of both Rules 2(a)(A) and 2(k) of the 2004 Rules." 10. In view of above analysis, we are of the considered opinion that the eligibility to duty credit of the disputed goods cannot be denied. Such eligibility either as 'capital goods' (accessories) or as 'inputs' has been examined and upheld by various decisions of the Hon'ble Apex Court and the Hon'ble High Courts as above. Accordingly, we answer the reference in favour of the appellant. The appeal file is returned to the referral Bench for a decision on merit." 8. For the period from 07.07.2009 to October 2009 the definition of 'input' under Rule 2(k). The Explanation 2 has been inserted to the said definition vide Notification No.16/2009CE(NT) dated 07.07.2009. Consequently, the items viz., HR coils, HR Sheets, M.S. Angles, M.S. Channels and MS plate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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