TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 836
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....he facts of the case are that the appellant herein M/s Madras Cements Ltd is engaged interalia, in the manufacture of cement falling under Tariff Item Nos 2523 2910/30/40 of the schedule to the Central Excise Act, 1985. In order to expand the production facilities, the appellant had constructed clinkerisation and thermal power plant in September 2006 within the factory premises. For installation/construction of those plant facilities, the appellant had procured various capital items and availed CENVAT credit of central excise duty paid on those goods by considering the same as inputs. The credit availed by the appellant was disputed by the department on the ground that the plant erected at site are embedded to the earth and as such, such pl....
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.... used for installation of the said capital goods, the benefit of input credit should be available on the disputed goods used/utilised for such intended purpose. With regard to availment of 50% of CENVAT credit on the capital goods in the financial year of their receipt, he submits that the appellant had never availed the disputed credit under the Head 'capital goods' and the entire credit has been availed under the Head 'inputs'. He has relied upon the judgement of Hon'ble Madras High Court in the case of Thiru Arooran Sugars Vs CCE [2017-TIOL-1357-HC-MAD-CX) and the final order dated 28.02.2019 passed by the Chennai Bench of CESTAT in the appellant's own appeal bearing No. 40400/2019 dated 28.02.2019, to state that denial of CENVAT credit ....
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.... the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service; Explanation 1- The light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever, Explanation 2- Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer; " 7. On scrutiny of the said definition, it transpires that all goods excepting the excluded items/goods itemised therein, were considered as inputs for the purpose of availment of CENVAT credit. Further, the explanation appended to the said definition cl....
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....ed in the final product or not), albeit, within the factory of production. Explanation 2 only states that 'input' includes goods used in the manufacture of capital goods, which are further used in the factory of the manufacturer. 31.1. A close reading of the main provision with Explanation 2 would show that 'inputs' are not only goods, which are used in the manufacture of final products, but also those which are "used in" or in relation to the manufacture of the final products, and this relationship could be either direct or indirect without being weighed down by the fact that they are not included in the final product. Their inclusion or exclusion from the final product, evidently, is not material, as long as the said exe....
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....). Explanation 2 cannot be read in a manner that it constricts, the scope and ambit of the main provision, i.e., Rule 2k(i). 31.. To our minds, if, there was any ambiguity, the same stands clarified with the issuance of the 2009 Notification. As correctly argued on behalf of the TAS and DCBL, the Notification does not indicate that it is either declaratory or retrospective." 9. We also find that in appellant's own case, this Tribunal vide final order dated 28.02.2019 has also extended the CENVAT benefit on the disputed goods, by considering the same as inputs. The relevant paragraphs in the said decision are also extracted herein below: "6.2 Although it is alleged in the Show Cause Notice that the goods did not fall within the definiti....