2019 (3) TMI 1368

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....y of Rs. 14,64,350/- on MS Angles, MS Plates, MS Channels, MS Joist, HR Plates etc. The department was of the view that these items do not fall within the definition of "capital goods" and, therefore, is not eligible for credit under such category. Show-cause notice was issued proposing to disallow the credit and recover the same along with interest and also to impose penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. The matter, after appeal before Commissioner (Appeals) reached the Tribunal and vide Final Order No.42322/2016, dated 25.11.2016, the Tribunal remanded the same to the adjudicating authority to consider the matter afresh as per the decisions cited in the final orde....

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.... case has referred to the decision in the case of M/s. Vandana Global Ltd., and then has held that credit is eligible. He further relied upon the decision in the case of M/s. Thiru Arooran Sugars Vs CESTAT, Chennai reported in 2017 (355) E.L.T.373 (Mad.) and argued that the Hon'ble jurisdictional High Court has held that credit is eligible. 3. It is also pointed out by the learned counsel that the appellant had furnished a Chartered Engineer's Certificate to establish that the said items were used in the fabrication and erection of capital goods. The Commissioner (Appeals) has observed that the appellants have not furnished the Chartered Engineer's Certificate, which is incorrect. He pointed out to the date of the order passed by the Com....

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....and for support of various machines like crusher, kiln, hoopers etc., is eligible for credit. Similarly, the jurisdictional High Court in the case of M/s. Thiru Arooran Sugars (supra) has analysed the very same issue and held that the credit is eligible. The appellants have produced a Chartered Engineer's Certificate to show these items are used for fabrication of capital goods and for their erection. The appellants cannot carry out manufacture of the finished products without use of such capital goods like cheminey, furnace etc. The decision in the case of M/s. Vandana Global Ltd., relied by authorities below has been held by various courts and Tribunals that it is no longer a good law. 8. In the Show Cause Notice it is alleged that the....