TaxTMI 
TaxTMI 
2019 (5) TMI 969
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....m as capital goods, despite that the articles as that of MS bars, MS plates, sheets, caps, channels, MS angles, etc. cannot be treated as capital goods as per the definition in Rule 2 of Cenvat Credit Rules, 2004. Department observed that during the period from May 2007 to June 2009, the appellants have wrongly availed cenvat credit of Rs. 9,87,908/- Accordingly, show cause notice No. 324 dated 02 May, 2012 was served upon the appellants proposing the recovery of the aforesaid amount of cenvat credit alleged to have been wrongly availed, alongwith the interest at the appropriate rate and the proportionate penalties. The original Adjudicating Authority vide its Order No. 20/2014 dated 10 March, 2014 has confirmed the said proposal and has im....
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....ted 07 July, 2009 was merely clarificatory in nature and thus has to be applicable retrospectively. Learned Authorised Representative has relied upon the decision of Vandana Global Ltd. Vs. C.C.E., Raipur the decision of Larger Bench of this Tribunal reported in 2010 (253) E.L.T. 440 (Tri.-LB). Learned Authorised Representative has impressed upon the head note which is reproduced as follows: "Cenvat/Modvat - Cenvat Credit Rules, 2004 amendment thereto whether retrospective - Definition of input amended from 7-7-2009 to exclude cement, angles, channels and other items used for construction of factory shed or building or for structures for support of capital goods - Explanatory Memorandum to Finance (No. 2) Bill, 2009 stating that pu....
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....e Notification No. 16/2009 dated 07 July, 2009 came into existence vide which in the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule 2, in clause (k), in Explanation 2, after the words "factory of the manufacturer", the following was inserted, namely:- "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 of structures for support of capital goods". (c) Thus, these impugned goods admittedly no more to qualify as input in furtherance of this Notification. (d) Admittedly the period in demand is prior the impugned notific....
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....ms, states that it shall come into force from the date of its publication in the official gazette. Clearly, if the intention was to clarify or give it retrospective effect, it would have been brought into force from a date anterior to the date of publication of the Notification." The another decision from the Hon'ble High Court of Chhattisgarh at Bilaspur Vandana Global Ltd. (supra) has also clarified that amendment to the Explanation 2 of rule (2k) vide Notification No. 16/2009 dated 07 July, 2009 is not clarificatory in nature hence shall be only prospective in operation. In view of these decisions and of Rule 1(2) of the impugned Notification, I am also of the opinion that the Notification was never intended to have a retrospective ef....