2020 (2) TMI 963

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....of Rule 2(k) of Cenvat Credit Rules (CCR), 2004 and Cenvat credit of Rs. 2,83,91,352/- has been denied on various input services holding that they do not qualify as input services in terms of Rule 2(l) of CCR, 2004. 2. The facts of the case are that the appellant is manufacturer of cement and to set up their manufacturing plant at Kurnool district. The appellant utilized and consumed various inputs and input services. The appellant procured various steel items to be used for construction of technological foundation and structures of the capital goods such as pre-heater tower, raw mill house, storage tanks (silos), clinker silo etc. The appellant procured goods viz., cement and steel items including TMT bars and CTD bars, aluminium scraps....

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....ore, they are not entitled to avail Cenvat credit. In some of the invoices, there are some alterations done in terms of Rule 9 of CCR, 2004 that these are not proper documents to avail Cenvat credit. Against the said order, the appellant is before us. 3. Learned counsel appearing on behalf of the appellant submits that the denial of Cenvat credit on various inputs is only relying on the decision of the Larger Bench of this Tribunal in the case of Vandana Global Ltd (supra). The said decision has been set aside by the Hon'ble Chattisgarh High Court as reported in 2018 (16) GSTL 462 (Chattisgarh) wherein it has been held that in terms of Rule 2(k) w.e.f. 07.07.2009 the explanation is prospective and not retrospective and if the said inputs....

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....onsideration of the submissions by the rival sides, two issues arise: (a) Whether the appellant is entitled to avail Cenvat credit on cement and various steel items which have been used by the appellant for setting up of new factory and used for technical foundation and structure of capital goods or not. (b) Whether the appellant is entitled to avail Cenvat credit on the input services in the question which have been received by the appellant at the factory for setting up a new factory or not. 8. Issue (a): The sole reason for denial of Cenvat credit is the decision of the Larger Bench of this Tribunal in the case of Vandana Global Ltd (supra). Admittedly, the said decision has been turned down by the Hon'ble Chattis....