TaxTMI 
TaxTMI 
2019 (5) TMI 867
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....iced that the appellant had purchased staging structure falling under chapter heading No.73089090 from M/s. Uttam Industrial Engineering Ltd. and have availed Cenvat Credit thereupon treating the said goods as capital goods. The Department alleged that the goods being falling under Chapter 73 are not covered under the definition of capital goods, nor they appeared to be the inputs for the appellant. Resultantly, the availment of Cenvat Credit during the period from July, 2011 to October, 2011 amounting to Rs. 36,74,010/- was objected. Resultantly, a show cause notice No.922 dated 11.04.2016 proposing the recovery of the aforesaid amount of Cenvat Credit availed was issued, simultaneously, proposing the interest on the said amount and penalt....
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....allenge is therefore, prayed to be set aside. Appeal is prayed to be allowed. 4. While rebutting these arguments, it is admitted on behalf of the Department that the Adjudicating Authorities below have relied upon the decision of the Larger Bench in the case of M/s.Vandna Global Ltd. vs. CCE reported in 2010 (253) E.L.T. 440, wherein it was held that foundations and supporting structures embedded to Earth though "can be categorized as capital assets, but do not qualify to be called as capital goods. The structures herein are also the supporting structures. Hence, there is no infirmity in the order under challenge. Appeal is accordingly prayed to be dismissed. 5. After hearing both the parties and perusing the entire record, we are of ....
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....t be treated as an input for any purpose whatsoever. Explanation 2. - Input includes goods used in the manufacture of capital goods which are further used in the factory of the manufacturer." W.e.f. 7-7-2009, the Explanation 2 was amended to include as follows :- but shall not include cement, angles, channels, Centrally Twisted Deform bar (CTD) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making or structures for support of capital goods; Further, the term Capital Goods has been defined in Rule 2(a) of the Cenvat Credit Rules, 2004, which reads as under : "(a) "Capital Goods" means :- (A) the following....
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.... sugar machinery. These systems comprise of many parts including structural components which are essentially the part of Sugar Machinery by way of technical specifications. Further, it is apparent from the Chartered Engineers Certificate that: (i) Various items of machinery and equipment in a sugar factory are installed at varying heights to avail the benefit of gravity for transferring the semi-processed material, which is in liquid form, through pipelines for one processing site to another. (ii) The structural staging is build to place the machinery and equipment at the required height and to make it possible for the workers to access the machines for operating them and for their maintenance and repair. (iii)....
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....he case in hand, we find that the structural steel items have been used not merely for the fabrication of support structures for capital goods, but for making the equipment to function technically. Thus, these structures are actually the component of sugar mills without which it cannot give the output efficiently. 10. It is apparent from the submissions of the appellant that the impugned articles were required to suitably support and facilitate the smooth functioning of the machines of the sugar mill and as such, while applying the above principle of user test such structures have to be considered as the part of the relevant machines. Since the definition of capital goods includes components, spares & accessories of such capital goods, w....