TaxTMI 
TaxTMI 
2017 (6) TMI 796
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....he present case are that the appellants are engaged in the business of packing of bulk cement into retail bags and are registered with the Department w.e.f 1.3.2007. The appellant's factory was started functioning during the 1999-2000 and they are receiving from their mother unit M/s. Rajashree Cement, Gulbarga and are packing it into retail bags and are clearing/selling it to their customers on payment of duty w.e.f 1.9.2007 onwards. Appellants are availing CENVAT credit on inputs, capital goods and input services. During the period from July 2009 to April 2010, the appellants constructed the packing plant and silos in their factory and availed the CENVAT credit of duty paid on cement and steel which were used in the construction of si....
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....he amendment to Explanation 2 to Rule 2(k) of CCR, 2004 to deny the credit on cement and steel items used in the manufacture of capital goods. He further submitted that the show-cause notice issued has never relied upon the amendment to the definition of inputs under Rule 2(k) as well as the decision of the Larger Bench in the case of Vandana Global cited supra and therefore both the authorities have travelled beyond the show-cause notice in confirming the demand. He further submitted that steel and cement satisfy the definition of inputs under Rule 2(k) as they are used in relation to the manufacture of final product. The definition of inputs as defined in Rule 2(k) of CCR, 2004 as existed prior to insertion of the Explanation is reproduce....
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.... of CCR, 2004. Further, the steel and the cement are used in the manufacture of capital goods and are therefore entitled to credit under the definition of inputs. For this submission, he relied upon the following decisions: • Dalmia Cements (Bharat) Ltd. vs. CCE, Trichy: 2015 (330) ELT 645 (Tri.-Chennai) • CCE, Mysore vs. ICL Sugars Ltd.: 2011 (271) ELT 360 (Kar.) • CCE, Bangalore-II vs. M/s. SLR Steel Ltd.: 2012 (280) ELT 176 (Kar.) • Bannari Amman Sugars Ltd. vs. CCE: 2010 (250) ELT 326 (Kar.) He also submitted that cement and steel used in the construction of packing plant is also allowable as credit. Cement and steel is used in the construction of parts of packing plant having facil....
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....curiam and not a valid law as rightly held by Kolkata High Court in the case of Surya Alloy Industries vs. UOI: 2014 (305) ELT 47 (Cal.) and Mudra Ports and Special Economic Zones Ltd. vs. CCE: 2015 (39) STR 726 (Guj.). He also submitted that the learned Commissioner (A) has failed to consider the subsequent decision of the jurisdictional High Court of Karnataka in the case of SLR Steels Ltd. cited supra. 5. On the other hand, the learned AR reiterated the findings of the impugned order and submitted that the amendment to the definition of inputs vide Notification No.16/2009 dated 7.7.2009 excludes cement, angles, panels, CTD, TMT and other items used for construction of factory shed, building or laying of foundation or making of structu....