CENVAT credit on pre-amendment structural supports remains available where materials enable installation and functioning of capital goods.

CENVAT credit is described as admissible for steel, cement, welding electrodes and gases used before 07.07.2009 to fabricate foundations, platforms, supports, conveyor structures, galleries, pipelines, chimneys and related structures required for installing and operating capital goods. Embedding those structures in earth does not negate their direct or indirect use in relation to manufacture. The later exclusion of such materials from credit eligibility is treated as prospective rather than clarificatory or retrospective, and therefore does not apply to credit taken before its effective date.

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Issues: Whether CENVAT credit is admissible on steel, cement, welding electrodes and gases used in fabricating structural works and support structures connected with cement and power plants for the period before 07.07.2009.

Analysis: The materials were used for fabrication of foundations, platforms, supports, conveyor structures, galleries, pipelines, chimneys and related structures required for installation and functioning of capital goods. Their eventual embedding in earth did not negate their use, directly or indirectly, in relation to manufacture. The exclusion introduced with effect from 07.07.2009 was not clarificatory or retrospective; therefore, it could not govern credit taken before that date.

Conclusion: CENVAT credit on the specified materials used for the stated structural and support works before 07.07.2009 is admissible, in favour of the assessee.

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