TaxTMI 
TaxTMI 
2016 (12) TMI 433
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.... are taken up together for disposal. 2. The Respondents are engaged in the manufacture of Sponge Iron/CTD /TMT Bras Wire Rods, etc. liable to central excise duty. They were availing cenvat credit on various inputs and capital goods in terms of Cenvat Credit Rules, 2004. The dispute in the present appeals relate to respondents' eligibility to avail cenvat credit of duty paid on various steel items like plates, angles, channels, etc., which are used in fabrication of structures in their respective units. The Revenue by entertaining a view that these structural items are not eligible for availing credit, initiated proceedings against them, which resulted in the original orders confirming the demand by disallowing the credits....
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....ogical structure of capital goods for the manufacture of finished excisable goods. These structures have become part and parcel of respective machinery. Some of the fabricated items were also in the nature of support to manufacture machinery without which the manufacturing process cannot be carried out. It was also recorded that the manufacturing facility is combination of various capital goods, machinery interconnected for the purpose of carrying out the intended manufacturing process. Big plants have different varieties of machinery, incidental or ancillary implements, which contributed to the production process. The various items for which these steel channels, angles, etc. have been used are very much part of the capital goods or struct....
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....bsp; the Supreme Court have held that "Modvat on capital goods" - Rule 57Q of the Central Excise Rules, 1944 -- Language used in the Explanation (1) of the Rule is very liberal - if any of the items enumerated in Explanation (1)(a) and 1(b) is used for any purpose mentioned therein for the manufacture of final products, it would satisfy the test of 'capital goods' - Goods specified in Explanation 1(c ) for availing Modvat as capital goods need not be used in the manufacture of final product, only requirement is that they should be used in the factory of production. "It would be observed from these decisions that one common restrain in all these decisions is that construction material, so....
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....cise & Customs, Nagpur reported in 2008 (225) ELT 0222 (Tribunal-Mumbai) have held that "Cenvat /Modvat -Welding Electrodes used for repairs and maintenance of plant and machinery in assessee's steel factory eligible to cenvat credit - Rule 3 of Cenvat Credit Rules, 2004". In another decision in the case of Bhushan Steels and Strips Ltd. Vs. CCE, Raigad reported in 2008 (2230 ELT 0517 (Tribunal-Mumbai), it has been held "Cenvat /Modvat -Capital Goods - Welding electrodes, wires etc. - Used in making of machine, plant etc.- HELD : use was for producing /processing capital goods, hence they were eligible for credit - Rule 2 (b) and Explanation 2 to Rule 2(g) of Cenvat Credit Rules, 2002- Rule 2 (a) of....
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....cation of support structures on which various capital goods are placed? The same stands denied by the lower authority. The learned DR has sought disallowance of the same by citing the decision of the Larger Bench in the case of Vandana Global Ltd. (supra) and other judgements. Further, he has brought to our notice and emphasized the amendment carried out in Explanation-II to Rule 2(a) which defines the term 'Input' w.e.f. 07.07.2009. It has further been pleaded that the Cenvat Credit claimed for the period prior to this will be covered within the decision of the Larger Bench in the case of Vandana Global Ltd. (supra). 14. The Larger Bench decision in Vandana Global Ltd.'s case (supra) laid down that even if t....