Cenvat credit on structural steel for machinery supports upheld for the pre-amendment period under the input credit rules.

Cenvat credit on structural steel and allied items used as supporting structures for plant and machinery was examined under Rule 2(k) of the Cenvat Credit Rules, 2004. The amendment effective from 7 July 2009 was treated as prospective, not clarificatory, in line with later High Court rulings, so the pre-amendment regime applied to goods used between June 2004 and November 2008. On that basis, items used as integral supports for machinery were eligible inputs, and credit could not be denied on the reasoning adopted in the impugned order.

---

---

Issues: Whether Cenvat credit on structural steel and allied items used for supporting plant and machinery was admissible for the period prior to 7 July 2009.

Analysis: The dispute turned on the interpretation of Rule 2(k) of the Cenvat Credit Rules, 2004 and the effect of the amendment that came into force on 7 July 2009. The Tribunal noted that the Larger Bench view treating the amendment as clarificatory had been displaced by subsequent High Court decisions, which held that the amendment was not clarificatory and operated prospectively. Since the goods were used for supporting machinery during the period June 2004 to November 2008, the credit claim had to be tested under the pre-amendment regime. Applying the principle that items used as integral supports for plant and machinery qualify as eligible inputs, and following the later High Court rulings, the Tribunal held that credit could not be denied on the ground adopted in the impugned order.

Conclusion: Cenvat credit on structural steel used for supporting plant and machinery was admissible for the period prior to 7 July 2009, and the assessee was entitled to relief.

---