TaxTMI 
TaxTMI 
2017 (8) TMI 1219
X X X X Extracts X X X X
X X X X Extracts X X X X
....terials required for stationing machineries on concrete foundations and were thus in the nature of immovable property to be taken as non-excisable goods. Accordingly, Show Cause Notice dated 19/08/2003 was issued to deny CENVAT Credit of Rs. 42,18,083.82. The Adjudicating Authority dropped the proceedings. Revenue filed appeal before the Commissioner (Appeal). By the impugned order, the Commissioner (Appeal) rejected the appeal filed by the revenue. Aggrieved by the order the Revenue preferred this appeal. 2. The Ld. A.R. elaborated the grounds of appeal. He submitted that the iron and steel items falling under Chapter 72 are essentially used in the fabrication of support structures and cannot be considered as parts and accessories of an....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... components of such capital goods fabricated inside the plant of the respondent, has been examined by the original authority. In fact, the original authority taken into consideration the basic objection against the credit raised in the show cause notice. He also examined the factual application of these various iron and steel items as certified by the chartered engineer. Further, it is to be noted that whether iron and steel item is to be considered as part or component or accessory of capital goods can be decided by applying user test as decided in Jawahar Mills Ltd. (supra) and elaborated in CCE Vs.Rajasthan Spinning & Weaving Mills Ltd. reported in 2010 (255) ELT 481 (S.C.). In fact, the ratio evolved by the Hon'ble Supreme Court has bee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng credit / credit on input usd. The Hon'ble Punjab & Haryana High Court in CCE, Jullandhar Vs. pioneer Agro Extracts Ltd. 2008 (230) ELT 597 (P&H) held that channels and angles, joint of iron steel used for installation of batch vessel or essential plant and machinery and are eligible for credit as capital goods. The Hon'ble Madras High Court in Thuru Arroran Sugar- 2015- TIOL-1734-HC-Mad.CX held that credit on M.S. Plates, angles, channels utilized in construction/erection of plant were eligible for credit. The High Court observed that the principle laid-down by the Hon'ble Supreme Court in Rajasthan Spinning and Weaving Mills Ltd. (Supra) is applicable to such situation. 7. We note that the Tribunal has been consistently following the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tural s, they would not be eligible for the credit, considering the amendment made w.e.f. 07.07.2009 as a clarification amendment and hence to be considered retrospectively. However, we find that the said decision of the Larger Bench was considered by the Hon'ble Gujarat High Court in the case of Mundra Ports & Special Economic Zone Ltd. 2015 (04) LCXO 197, wherein it was observed that the amendment made on 07.07.2009 cannot be held to be clarificatory and as such would be applicable only prospectively. 15. We find that the controversy can be laid to rest by making a reference to the decision of the Apex Court in the case of CCE, Jaipur Vs. Rajasthan Spinning & Weaving Mills Ltd.- 2010 (255) ELT 481 (SC)- 2010-TIOL-51-SC-CX, wherei....
X X X X Extracts X X X X
X X X X Extracts X X X X
....der Rule 2 (a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat Credit." 5. The decision of Hon'ble Madras High Court in CCE, Salem Vs. Madras Aluminium Co. Ltd. 2017 (349) ELT 133 (Mad.) deals with the scope of credit on similar items and also application of the concept of support structure while deciding the dispute. 6. Ld. A.R. also relied on the decision of Hon'ble Supreme Court in the case of Saraswati Sugar Mills Vs. Commr. of C. Ex., Delhi-III [2011 (270) E.L.T. 465 (S.C.) and also the decision of Hon'ble Allahabad High Court in the case of Daya Sugar Vs. Commr. of Central Excise, Meerut-I [2015 (316) E.L.T. 394 (All.). I note that the decision of the Hon'ble Supreme Court in Saraswati Sugar Mills dealing with p....