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TMI Blog2022 (7) TMI 1575X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of dutiable finished goods. It is further noticed that these disallowance have been made by the Court below in view of the Larger Bench ruling of this Tribunal in the case of VANDANA GLOBAL LTD. VERSUS CCE [2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)]. This ruling has been overruled by the Hon"ble High Court of Chhatisgarh in M/S VANDANA GLOBAL LIMITED AND OTHERS VERSUS COMMISSIONER, CENTRAL EXCISE AND CUSTOMS, CENTRAL EXCISE [2018 (5) TMI 305 - CHHATTISGARH, HIGH COURT]. The appellant further submitted that the issue in the present case is now squarely covered by Larger Bench ruling of this Tribunal in M/S. MANGLAM CEMENT LTD. VERSUS C.C.E., JAIPUR-I [2018 (3) TMI 1547 - CESTAT NEW DELHI]. On the other hand Ld. DR supported the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stings used for replacement of damaged parts of the cement plant and machinery are eligible for cenvat credit; (iv) Whether rope, asbestos sheet for jointing and similar items used for plugging the leakages are eligible for cenvat credit; (v) Whether nitrogen gas falling under Chapter 28 and PVC sheets plastic sheets of chapter 39 are eligible for cenvat credit; (vi) Whether aluminium conductors falling under sub-heading 7614.10 are eligible for cenvat credit. and accordingly held that:- (i) M.S. Angles, Channels, Plates etc. used for repair and maintenance of plant and machinery would be eligible for cenvat credit. (ii) Asbestos jointing sheets is used for plugging the leakages in the pipes, it has to be treated as an item u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner (Appeals) in respect of Nimbahera unit of the appellant allowed cenvat credit totalling Rs.20,23,779/- and disallowed the credit totalling Rs. 2,50,195/-, which was mainly on account of iron and steel structure, tower material, steel casting. 3. So far Mangrol unit of the appellant is concerned, he was pleased to allow the cenvat credit of Rs. 9,80,449/- and disallowed credit for Rs. 3,39,873/- being amount towards iron and steel structure, tower material, aluminium conductors. 4. Learned Counsel for the appellant inter alia urges that admittedly these items have been used by the appellant in the factory of production. These items have been used in repair and maintenance of the existing plant and machinery and also in fabrication ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not, the question has been decided in favour of the assessee. The larger Bench held as follows:- "9. On perusal of definition of "input" extracted above, it would reveal that all the goods (excepting light diesel oil/high speed diesel oil and motor spirit) are considered to fall under such definition, when "used in or in relation to manufacture of final products", whether directly or indirectly, and whether contained in the final product or not. The only condition required to be fulfilled is that the goods must be used within the factory of production. Further, Explanation 2 appended to such definition clause provides that "input" includes goods, which are used in the manufacture of capital goods for further use in the factory of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant and machinery. The assessee has clearly demonstrated that structurals 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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