TaxTMI 
TaxTMI 
TaxTMI 
2018 (1) TMI 681
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....tory, iron and steel used as input in construction of godowns, sheds and yards of the sugar plant, Iron and Steel used as inputs for making staging structures to facilitate operation of various machineries. 2. Vide show cause notice dated 5th July, 2007, it was alleged that on scrutiny of the monthly ER-I Return for the period June, 2006 to March, 2007, it appeared that the appellants, a manufacturer of cane sugar and molasses, have availed Cenvat credit on certain items which was not in accordance with Cenvat credit Rules. Accordingly, the Superintendent, called for the details of credit availed on inputs since commencement of production, showing input wise details. In reply, the appellants submitted detailed chart of consumption of iron ....
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....which is provided by these technological structures and staging. The plant and machineries will be incomplete without these structures and staging. He further stated that sheds are essential for protection of plant and machineries from harmful effects of sun and rain, so sheds are essential and integral part of plant and machineries. It further appeared to the Department that technological structures, yards, godowns, sheds (manufactured out of Iron & Steel items namely M.S. Angles, Channels, M.S. Plates, Sheets Structural material etc. falling under Chapter 72 and 73) are permanently attached to the earth so they are nothing but civil constructions carried out for constructing the factory and hence do not appear to be covered by the definit....
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....anaging Director, Rs. 2 lakhs on Shri G.S.C. Rao, the Executive Director, Rs. 2 lakhs on Shri Sanjay Taparia, Director (Finance) of the Company Simbhaoli Sugar Ltd. under Rule 26 of CER, 2002. 5. Being aggrieved the appellants - manufacturer and its directors are before this Tribunal in appeal. The Learned Counsel for the appellant states that the issue is no longer res Integra. The Larger Bench ruling of this Tribunal in Vandana Global Ltd. (supra) has been held to be no longer good law and distinguished by Hon'ble Gujarat High Court in Mundra Ports & Special Economic Zone Ltd. 2015 (39) S.T.R. 726 (Guj.), wherein it has been held for the purpose of Cenvat credit on - Cement and steel used in construction of new jetties and other comm....
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.... for which he is getting jetty constructed through the contractor and the appellant has claimed input credit on cement and steel. Cement and steel were not included in Explanation 2 from 2004 up to March, 2006. The Cenvat credit Rules, 2004 were amended in exercise of the powers conferred by Section 37 of the Central Excise Act, 1944 with effect from 07/07/2009, the date on which it was notified by the Central Government, from the date of the notification. Therefore, the appellant (Mundra Ports) was held input credit by observing that the ruling of the Hon'ble Andhra Pradesh High Court in Commissioner of Central Excise, Visakhapatnam-II vs. Sai Sahmita Storages (P) Ltd., squarely applied. So far the use of cement and steel etc. in const....
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....ds and accordingly, allowed Cenvat credit. Further the use of capital goods namely HR SS plates etc. used in fabrication of storage tank of Ethyl Acetate was also held to be eligible for Cenvat credit as storage tank is specified as capital goods under Rule 2(a) (A) (vii) of CCR, 2004. Accordingly, the Learned Counsel prays for allowing the appeals with consequential relief. 6. The Learned AR for Revenue have supported the findings given in the impugned order. 7. Having considered the rival contentions, we find that the issue herein is squarely covered in favour of the appellants in view of the rulings in the case of Mundra Port & Special Economic Zone Ltd. (supra), wherein the Larger Bench ruling of this Tribunal in Vandana Global Ltd.(S....