TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether iron and steel items used for fabrication of boiler, crystalliser, molasses tank and supporting structures for sugar manufacturing machinery were eligible for CENVAT credit as capital goods or inputs for the period prior to 07.07.2009; (ii) Whether the amendment to Rule 2(k) of the CENVAT Credit Rules, 2004 operated retrospectively.
Issue (i): Whether iron and steel items used for fabrication of boiler, crystalliser, molasses tank and supporting structures for sugar manufacturing machinery were eligible for CENVAT credit as capital goods or inputs for the period prior to 07.07.2009.
Analysis: The period in dispute was prior to 07.07.2009. The materials were used in fabrication of machinery and supporting structures forming part of the capital goods. Applying the user test and the settled position that goods used in fabrication of capital goods, including their components and support structures, can qualify for credit, the items were treated as eligible for CENVAT credit.
Conclusion: The issue was decided in favour of the assessee.
Issue (ii): Whether the amendment to Rule 2(k) of the CENVAT Credit Rules, 2004 operated retrospectively.
Analysis: The amendment introduced by the CENVAT (Amendment) Rules, 2009 was held to be prospective in operation. Since the disputed period preceded the amendment, the credit eligibility had to be examined under the pre-amendment position, which supported admissibility of credit on the goods used for fabrication of capital goods.
Conclusion: The amendment was held to be prospective and not retrospective.
Final Conclusion: The disallowance of CENVAT credit and the consequential penalty were not sustainable, and the appeal was allowed with consequential relief.
Ratio Decidendi: For the period prior to 07.07.2009, steel and iron items used in fabrication of capital goods or their supporting structures are eligible for CENVAT credit, and the 2009 amendment to Rule 2(k) does not apply retrospectively.
TaxTMI 
TaxTMI 
