2010 (6) TMI 698

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....eal, the dispute is restricted to admissibility of credit on joists used in respect of EOT cranes amounting to Rs. 43,261/- which has been allowed by the Commissioner (Appeals) and consequently setting aside of penalty. 4. Learned SDR submits that the joists has a role for movement of EOT cranes which is used for carrying raw material in the plant from one place to another. The joists is basically a supporting structure which supports the movement of EOT cranes. He submits that the issue relating to eligibility of credit on items like angles, beams, bars, joists were specifically considered by the Larger Bench of the Tribunal in the case of Vandana Global Ltd. reported as [2010 (253) E.L.T. 440] and it has been clearly held that material....

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....rm "capital goods" can include plant, structures embedded to earth? (b)     Whether the goods like angles, joists, beam, channels, bars, flats which go into fabrication of such structures can be treated as 'inputs' in relation to their final products as inputs for capital goods, or none of the above? (c)     Whether the credit can be allowed in respect of goods like angles, joists, beam, channels, bars, flats which go into fabrication of such structures and plant? Following are the salient features of the decision of the Larger Bench :- (a)   It disapproved the decision of the Tribunal in the case of Bhushan Steel and Strips Ltd. v. CCE, Raigad [2008 (223) E.L.T. 517 (Tri.-Mum)] ....

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....they listed for such inclusion in the definition of capital goods. With the above findings and observations, the questions referred to the Larger Bench were answered as follows : "49. In the light of the foregoing findings, we answer the questions referred to the Larger Bench as follows :- (a)     The terms "capital goods" has been defined in the Cenvat Credit Rules, which in turn have been framed under the rule making powers conferred under Section 37(2) of the Act. The said Section refers to credit of duty paid on goods used in, or in relation to the manufacture of excisable goods. Hence, 'capital goods' defined in the Cenvat Credit Rules in the context of providing credit of duty paid, have to be excisable go....