2019 (3) TMI 763

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....hannels, Angles, Plates, Bars and HR Coils all falling under Chapter 72 of the Central Excise Tariff Act, 1985 as capital goods. Department took the view that the said goods are not covered within the ambit of definition of capital goods and accordingly initiated proceedings proposing recovery of an amount of Rs. 20,94,685/-as allegedly irregularly availed credit, with interest thereon. In adjudication, the original authority vide Order dated 30.04.2012, interalia, restricted the demand to Rs. 18,52,730/- and imposed equal penalty under Rule 15(2) of the Central Excise Rules, 2004, read with Section 11 AC of the Central Excise Act, 1944. In appeal, the Commissioner (Appeals) vide impugned order No. 56/2012-CE dated 23.11.2012 upheld the ord....

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.... in disallowing credit on MS plates, MS joint and MS angles on the ground that they did not qualify as capital goods in Vandana Global Ltd. (supra). iii) The Larger Bench decision of Vandana Global Ltd. has been set aside by the Hon'ble High Court of Chhattisgarh in the judgment reported in 2018 (16) GSTL 462 (Chhattisgarh). 5. On the other hand, Ld. AR opposes the appeals. He places reliance on the ratio of the Hon'ble Apex Court in Saraswathi Sugar Mills Vs. CCE, Delhi - 2011 (271) ELT 465 (S.C), where it was observed that iron and steel structures are not components or capital goods used in sugar manufacturing plant. Ld. AR further submits that as per the definition of capital goods in Rule 2 (a) of the Cenvat Credit Rules, 2004, s....