TaxTMI 
TaxTMI 
2022 (9) TMI 623
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....e major inputs. For the manufacture of the capital goods at coal washery unit, they purchased 47.195 MT of iron and steel materials such as MS Angles, Channels, MS Flats, Plates, CR Coils etc. all falling under Chapter 72.Coal washery is set up to wash raw coal for use in the manufacture of sponge iron. The Appellant manufactured specified capital goods such as Hopper, Conveyor, components, accessories of Crushing machine and EOT Cranes, which are specified capital goods in terms of various sub-clauses of Rule 2(a)(A) of the Cenvat Credit Rules, 2004. Upon procuring the said inputs the Appellant in terms of the amended Rule 2(k), read with Rule 2(a)(A), read with Rule 3 of Cenvat Credit Rules, 2004 claimed Cenvat credit of Rs.1,97,090/- dur....
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....ed Cenvat Credit amounting to Rs.1,97,090/-. Penalty of Rs.1,97,090/- under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 has also been imposed. Hence the present appeal before the Tribunal. 2. The Ld.Advocate for the Appellant submits that the impugned iron and steel goods are utilized by them for manufacture of capital goods such as Hopper, Conveyor, components, accessories of Crushing machine and EOT Cranes. It is his submission that the impugned iron and steel materials are not used for making support structure as held by the Department. It is the case of the Appellant that by a series of decisions it has been held that support structures are 'accessories' of various production machin....
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....Tribunal (Larger Bench) was challenged by the assessee before the Hon'ble Chhattisgarh High Court as reported in 2018 (16) GSTL 462 (Chhattisgarh), wherein the Tribunal's decision had been set aside on 13.09.2017. I agree with the contentions of the Appellant that the very basis followed by the Ld.Commissioner(Appeals) has now been settled in their favour. Relevant portion of the said decision is reproduced:- "5. The impugned order of the Tribunal had come up for consideration before different High Courts either cited as precedent or as relied upon by the Tribunal in different other matters. The Gujarat High Court inMundra Ports & Special Economic Zone Ltd. - 2015 (39) S.T.R. 726 (Guj.) referred to the contents of the amendment, to....
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....ct - The power to make rules conferred by clause (xvi) of sub-section (2) shall include the power to give retrospective effect to rebate of duties on inputs used in the export goods from a date not earlier than the changes in the rates of duty on such inputs. Though the power to make rules include the power to give retrospective effect, while doing so the provision under consideration is neither made retrospective nor could it be treated as one. 8. We are in complete agreement with the ratio of Mundra Ports (supra) and M/s. Thiruarooran Sugars (supra) on all fours. 9. Resultantly, we answer the questions formulated in these appeals in favour of the assessees and against the Revenue. 10. In the result, the appeals ....
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....he ambit of the definition of "input" so long as it satisfies the "user test". The operative portion of the decision of the Hon'ble Madras High Court is reproduced below:- "..43. As would be evident from the aforesaid extract, in Rajasthan Spinning & Weaving Mills Limited case, the Court relied upon the user test, enunciated, in its earlier judgment rendered in : Jawahar Mills Limited case. Clearly, the Court held that steel plates and MS Plates, i.e., structurals used in the fabrication of the chimney, which were an integral part of the diesel generating set would fall within the ambit and scope of definition of capital goods. The Court, went on to further hold that such equipment had to be treated as an accessory. As a matter of ....
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....the capital goods (i.e., plant and machinery), as they hold in position the plant and machinery, which manufactures the final product. Therefore, in our opinion, whether the "user test" is applied, or the test that they are the integral part of the capital goods is applied, the assessees, in these cases, should get the benefit of Cenvat credit, as they fall within the scope and ambit of both Rule 2(a)(A) and 2(k) of the 2004 Rules. 45. For the foregoing reasons, we answer the questions, in all the three (3) appeals, which are set forth above, in favour of the assessees and against the Revenue. 46. Accordingly, the captioned appeals are allowed and the impugned judgments of the Tribunal, in each of these appeals, are set as....