2016 (12) TMI 17

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....forced Cement Concrete) structures which are cement pillars / columns required for installation of machinery in the course of expansion/modernization of their factory by enhancing the capacity of production. Six show-cause notices were issued alleging irregular availment of credit on subject items. The period involved and the demand of these show-cause notices are detailed below:- Sl. No. SCN dt. Amount demanded period covered Issue in brief 1. 01/03/2008 Rs.3,75,086/- Rs. 18,83,061/- 02/07 to 03/07 Irregular availment of CENVAT credit on capital goods. Excess credit taken the remaining in advance 2. 19/05/2008 Rs.4,53,056/- 06/07 to 09/07 and 12/07 to 02/08 Irregular availment of CENVAT....

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....s used for fabrication of capital goods. He referred to the definition of inputs contained in CENVAT Credit Rules 2004 and pointed out that the credit was availed prior to 07/07/2009 and therefore the denial of credit is not legal and proper. 4. On behalf of the Department, the learned AR Shri Gunaranjan reiterated the findings in the impugned order. He contended that the subject items used by the appellant included TOR bars which are generally used in construction activity only and that therefore the credit has been correctly denied. It is also submitted by him that the explanation introduced in the definition of inputs w.e.f, 07/07/2009 has retrospective application as held in the case of Vandana Global Ltd. [2010-TlOL-624-CESTAT-DEL-L....

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....nputs is applicable retrospectively as laid by Larger Bench of this Tribunal in the case of Vandana Global Ltd. (supra). The Hon'ble Apex Court in the case of CCE, Jaipur Vs. Rajasthan Spinning & Weaving Mills Ltd. [2010-TlOL-51-SC-CX] applying the user test, held that steel plates and MS channels used for fabrication of capital goods is eligible for credit. In Ramala Sahakari Chini Mills Ltd. Vs. CCE, Meerut-I [2016(334) ELT 3 (SC)], the Hon'ble Apex Court observed that the word include in the definition of 'input' is generally used to enlarge the meaning by way of extension and not restriction. In Sanghvi Forgings & Engineering Ltd. vs. CCE, Vadodara-l [2014(302) ELT 136 (Tri. Ahmd.)] allowed credit on MS items as inputs t....