2018 (2) TMI 378

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....er embedded to earth, which is not capital goods or inputs as defined under erstwhile Cenvat Credit Rules, 2002 and the Cenvat Credit Rules, 2004. The period involved is Feb.'04 to Mar.'05 and the disputed credit amount is Rs. 1,34,88,040/-. In adjudication proceedings, initiated against the appellant, the Commissioner vide impugned order, dated 10.03.2008 confirmed demand of the said amount along with interest liability and also imposed equal penalty under relevant provisions. Hence, this appeal. 2. Today, when the matter came up for hearing, learned advocate Shri Raghavan Ramabhadran submits that the matter is covered by number of decisions, as follows: (i) M/s. Monnet Ispat Ltd. & M/s. Cether Vessels Pvt. Ltd., Vs Commissioner....

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....ully support the stand taken by the appellants. In M/s. Monnet Ispat Ltd. & M/s. Cether Vessels Pvt. Ltd., the Tribunal headed by the President, CESTAT has addressed the issue in detail in paragraphs 10 to 12, which are reproduced below: - "10. Boilers have been manufactured by M/s. Cethar Vessels Pvt. Ltd. and supplied to M/s. Monnet Ispat Ltd. in disassembled form. The entire boiler has been put together at the site of M/s. Monnet Ispat Ltd. by way of erection. Various parts which constituted the full boiler were classified and cleared by M/s. Cethar Vessels Pvt. Ltd. under chapter 8402, This obviously included the parts which were fabricated and used as supporting structures. Hon'ble Supreme Court in the case of Swetha Engineering....

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....ying of foundation or making of structures for support of capital goods, but are essentially the part of said Boilers." 7. The Department itself has come out with the clarification that those structural components which are to be used as parts of Boiler System would be classifiable as parts of Boiler only under Heading 8402 of the Tariff. This clarification, thus, vindicates the stand which was taken by the assessee throughout by rightly classifying the parts of the boilers under Chapter subheading 8402.90 of the Central Excise Tariff Act, 1985. 8. In view of the foregoing, this appeal is allowed by setting aside the impugned order passed by the CESTÄT as also the order of the Commissioner (Appeals), There shall, howe....

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....the Hon'ble Gujarat High Court in the case of Mundra Ports & Special Economic Zone Ltd., 2015 (04) LCX0197 = 2015 (39) S.T.R. 726 (Guj.), wherein it was observed that the amendment made on 7-7-2009 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 v. Rajasthan Spinning & Weaving Mills Ltd., 2010 (255) E.L.T. 481 (S.C.), wherein the Hon'ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The credit stands allowed in the light of Rule 57Q of the erstwhile Central Excise....