TaxTMI 
TaxTMI 
2023 (4) TMI 321
X X X X Extracts X X X X
X X X X Extracts X X X X
....ailed CENVAT Credit on various iron and steel items such as sheets, plates, bars, coils, TOR steel, pipes, angles, channels etc. and utilized the same in its factory for the purpose of fabrication and/or erection of various capital goods i.e. Clinker Silo and in the packaging plant, which were in turn used for manufacturing of excisable goods i.e. cement. The said iron and steel items were also used for laying the foundation for installation of capital goods such as wagon loading platform, belt conveyor etc. used in manufacturing and clearance of excisable goods. The break up of material used and CENVAT Credit availed is as under, which stands certified by the Chartered Engineer's Certificate:- Sr. No. Project Description Quantity ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt, submitted that the findings in the impugned order that the Appellant failed to substantiate usage of the subject goods in its factory in or in relation to manufacture is factually incorrect as the Chartered Engineer's Certificate proves that the subject goods were used within the factory of the Appellant. He further submitted that the period involved in this case is from 2005-06 to April 2008 and the Show Cause Notice was issued on 15.05.2009 which is beyond the normal period prescribed under Section 11A. Accordingly, he prayed for allowing their Appeal. 5. Ld.Authorized Representative for the Department justified the impugned order and submitted that the Appeal filed by the Appellant, being devoid of any merits, ma....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot inputs. 9. It has been contended by the Ld.Advocate for the Appellant that the Gujarat High Court in Mundra Ports & Special Economic Zone Ltd. v. C.C.E. & Customs - [2015 (39) S.T.R. 726 (Guj.)], the Madras High Court in India Cement Ltd. v. CESTAT, Chennai - [2015 (321) E.L.T. 209 (Mad.)] and Thiru Arooran Sugars v. CESTAT, Chennai - [2017 (355) E.L.T. 373 (Mad.)] have held the judgment of Vandana Global (supra) not good in law. Therefore, the reasoning of the Adjudicating authority, which imposed the demand along with interest and also penalty on the Appellant, by relying upon the amendment in Explanation 2 to Rule 2(k) and also Vandana Global (supra) is clearly unsustainable. 10. Ld.Advocate for the Appellant has nex....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not, and includes lubricating oils, greases, cutting oils coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used for manufacture of final products or for any other purpose, within the factory of production. Explanation 1. - The high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever. Explanation 2. - Inputs include goods used in the manufacture of capital goods, which are further used in the fac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....clusion was provided for goods used for laying of foundation or making of structures for support of capital goods. Rule 2(k) as substituted w.e.f. 1-3-2011 reads as under : "2(k) "input" means, - (a) all goods used in the factory by the manufacturer of the final product; or (b) any goods including accessories, cleared along with the final product, the value of which is included in the value of the final product and goods used for providing free warranty for final products; or (c) all goods used for generation of electricity or steam (or pumping of water) for captive use; or (d) all goods used for providing any (output service); or (e) all capital goods which have ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2-4-2012 and 18-5-2012, it comes out that these circulars have been issued in the changed context of the definition of [Rule] 2(k) of Cenvat Credit Rules, 2004 and both circulars have no concern for the period in issue. Thus, we find that the reliance placed by the Revenue in this regard has no substance. 17. The Madras High Court in India Cement (supra) noticed Vandana Global (supra) but relied upon the Apex Court judgment in Rajasthan Spinning & Weaving Mills Ltd. (supra), wherein the Apex Court has considered an issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set and after considering it, the Apex Court allowed the Cenvet credit on MS Rod, sheets, MS Channel, MS Plate, etc., used f....