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: Whether CENVAT credit on TMT bars, MS channels, MS beams, MS angles and similar steel items used for construction of factory/jetty structures and support structures for capital goods was admissible for the period prior to 07.07.2009, and whether the personal penalty based on the same disallowance could survive.
Analysis: Rule 2(k) of the CENVAT Credit Rules, 2004, as applicable during the disputed period, included within the expression "inputs" goods used in the manufacture of capital goods which are further used in the factory of the manufacturer. The later amendment inserting an exclusion for cement, angles, channels, CTD/TMT bars and similar items used for construction of factory shed, building, foundation or support structures was held not to govern the prior period. The decision followed the later High Court view that such amendment was not to be applied retrospectively and that steel items used in fabrication of embedded structures, jetties and similar support works remained eligible for credit for the relevant pre-amendment period.
Conclusion: CENVAT credit on the disputed steel items was admissible for the period in question, and the corresponding penalty could not stand.
Ratio Decidendi: For the period prior to the amendment of Explanation 2 to Rule 2(k), goods used to fabricate structures supporting capital goods were within the scope of "inputs", and the exclusion inserted later operated prospectively.
TaxTMI 
TaxTMI 
