2018 (12) TMI 232

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....85. The said Pig Iron facility comprises of, inter alia, the following sub-plant and machinery classifiable under Chapter 84 and indentified as under: (i) Mini Blast Furnace; (ii) Hot Blast Furnace; (iii) Blast Furnace Gas Duct System; (iv) Gas Cleaning Plant; (v) Slag Granulation Plant; (vi) Pipe Line and Pump House; (vii) Pig Casting Plant; (viii) Raw Material Handing Plant; (ix) Truck Tripler; (x) Electrical Control Plant; (xi) CA Fan House; (xii) Venturi and Scrubber; (xiii) Weigh Bridge For the purpose of installation and commissioning of Pig Iron manufacturing facility, the appellant availed cenvat credit on Angles, Channels, Joist, Beam, MS Plate Tor Rod, TMT Bars etc. classifiable under Chapter 72 and referred to as "t....

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....d penalty under Rule 15(2) only but did not impose any penalty under Rule 15(1) of the Cenvat Credit Rules, 2004. 2. Ld. Consultant appearing on behalf of the assessee submits that the structural items and cement used for fabricating structure/laying foundation to support the capital goods qualify as inputs within the meaning of Rule 2(k) of the Cenvat Credit Rules, 2004 during the relevant period being prior to the amendment introduced to the said definition of inputs vide Notification No. 16/2009-CE dated 07.07.2009. Ld. Consultant further submits that explanation to the definition of inputs could not be read in a manner so as to restrict the scope and ambit of the main provision. He vehemently argued that the cenvat credit on structural....

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....on: (a) Principal Commissioner vs. Diamond Power Infrastructure Ltd. [2016(44) STR J60 (Guj.)]. (b) Commissioner of Central Excise, Customs and Service Tax vs. Ultra Tech Cement Ltd. [2017 (347) ELT 3 (Chattisgarh)]. 3. Ld. D.R. reiterates the discussions and findings of the Adjudicating Authority in the case of appeal filed by the assessee and reiterates the grounds of appeal in the case of Revenue's appeal. 4. Heard both sides and perused the appeal records. 5. The only allegation against the assessee is that they claimed cenvat credit irregularly with reference to cement and iron & steel items such as Angles, Channels, Joist, Beam, MS Plate Tor Rod, TMT Bars etc. used for fabricating structures or laying of foundation for suppor....

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....y goods or for bringing about any change in the substance for the manufacture of final product, although this view was expressed in the light of the afore-noted definition of "capital goods" in the said Rule, which is not there in Rule 57Q, as applicable in the instant case, yet the "user test" evolved in the judgment, which is required to be satisfied to find out whether or not particular goods could be said to be capital goods, would apply on all fours to the facts of the present case, in fact, in para 6 of the said judgment, the court noted the stand of the learned Additional Solicitor General, appearing for the Revenue, to the effect that the question whether an item falls within the purview of "capital goods" would depend upon the user....