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of <h1>CENVAT credit allowed on MS angles, channels, beams for machinery fabrication under Section 37(2)(xvia)</h1> <h3>Shree Renuka Sugars Ltd. (Unit-IV) and (Unit-V) Versus Commissioner of Central Excise, Belgaum Commissionerate</h3> Shree Renuka Sugars Ltd. (Unit-IV) and (Unit-V) Versus Commissioner of Central Excise, Belgaum Commissionerate - TMI Issues Involved:1. Entitlement to avail Cenvat credit on MS angles, MS channels, MS beams, MS joists, MS plates, etc.2. Retrospective applicability of the amendment in CENVAT Credit Rules, 2004.Summary:Issue 1: Entitlement to avail Cenvat credit on MS angles, MS channels, MS beams, MS joists, MS plates, etc.The appellants, engaged in manufacturing sugar and molasses, availed Cenvat credit on various inputs used in the factory for manufacturing capital goods and support structures. The learned Commissioner, following the judgment in Vandana Global Ltd. Vs. CCE&C, Raipur [2010(253) ELT 440 (Tri. LB)], held that these items do not fall under the definition of inputs and confirmed the demand with interest and penalty. The appellants contended that the principle laid down in Vandana Global Ltd. has been overruled by the Hon'ble High Court of Chhattisgarh in Vandana Global Ltd. Vs. CCE&Cus., Raipur [2018(16) GSTL 462 (Chhattisgarh)], and cited judgments from the Hon'ble Gujarat High Court and Hon'ble High Court of Madras supporting their claim that such items used in the fabrication of capital goods should be treated as inputs.Issue 2: Retrospective applicability of the amendment in CENVAT Credit Rules, 2004The Tribunal noted that the issue is no longer res integra and is covered by the judgment of the Hon'ble Chhattisgarh High Court in Vandana Global's case, which concluded that the amendment in CENVAT Credit Rules, 2004, effective from 7-7-2009, is not retrospective. The Gujarat High Court in Mundra Ports & Special Economic Zone Ltd. [2015(39) STR 726 (Guj.)] and the Madras High Court in Thiru Arooran Sugars [2017(355) ELT 373 (Mad.)] held that the amendment cannot be treated as clarificatory and thus, cannot operate retrospectively.The Tribunal also referred to the Larger Bench decision in Mangalam Cements Ltd. Vs. CCE, Jaipur-I [2018(360) ELT 737 (Tri. LB)], which upheld that steel and cement used in structural items are admissible as inputs. The Tribunal concluded that the eligibility to duty credit of the disputed goods cannot be denied, either as capital goods or inputs, based on various precedents from the Hon'ble Apex Court and High Courts.Conclusion:The impugned orders were set aside, and the appeals were allowed with consequential relief to the appellants as per law. The Tribunal pronounced the operative part of the order in Open Court on the conclusion of the hearing.
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