TaxTMI 
TaxTMI 
2018 (7) TMI 1208
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....are being disposed of by a common order. 3. The relevant facts that arise for consideration are during the period April, 2006 to March, 2007, the appellant/assessee has availed CENVAT credit on various inputs like steel items, profile sheets, electrodes, cement etc., for fabrication and erection of plant and machinery. Lower authorities are of the view that such credit which was availed by the appellant/assessee is ineligible as steel items, profile sheets, electrodes, cement, etc., do not qualify to be inputs or as capital goods. Coming to such a conclusion two show cause notices were issued for the demand of the CENVAT credit so availed. The appellant contested the show cause notice on merits before the adjudicating authority led evidenc....
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....rity has incorrectly denied the CENVAT credit as these items are used in the factory premises during the period in question and on a similar issue, the Hon'ble High Court of Madras in case of Thiru Arooran Sugars vs CESTAT, Chennai [2017 (355) ELT 373 (Mad.)] has set aside the Tribunal's Order which confirms the demand that these items are ineligible for CENVAT credit. He also drawn our attention to the judgment of this Bench of Sree Jayajothi Cements Ltd Vs CCE & ST, Tirupati [2017 TIOL 3950 (CESTAT-Hyd)] to support his arguments that prior to 07.07.2009 CENVAT credit is available on all the items which are used in factory premises for fabrication of machinery and the foundation. He also relied on the decision of the Hon'ble High Court of ....
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....ot be availed on capital goods unless it is established that items are used as accessories, components, parts, etc., and also on the Vandana Global Ltd decision [2010 (253) ELT 440 (Tri-LB)] for the proposition that the structural items like steel, cement, etc., CENVAT credit cannot be availed is the provision which was brought by way of explanation to the definition of inputs and that being clarificatory in nature and would also apply to the period in the case in hand. 7. Learned Counsel submits that his arguments as to the eligibility to avail CENVAT credit which has been denied to them will apply in the appeal filed by the Revenue against the dropping of the demand. 8. On careful consideration of the submissions made by the both sides ....
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....case of Vandana Global Ltd has been struck down by the Hon'ble High Court of Gujarat in the case of Mundra Ports & SEZ (supra). Accordingly, the reliance on the Larger Bench decision to hold that the explanation inserted to the definition of inputs is of clarificatory in nature does not stand scrutiny of law. 10. Various other decisions relied by the Learned Departmental Representative like the case of Saraswati Sugar Mills and Madras Cements also will not carry the case further as in that case, the issue was totally different than the issue in the hand. 11. As regards the CENVAT Credit denied to the appellants to the tune of Rs. 1.55 Crores, we find that the findings recorded by the adjudicating authority that these items were used for f....