TaxTMI 
TaxTMI 
2023 (6) TMI 143
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....acts giving rise to the present appeal, briefly stated are that the appellant Company is engaged in manufacture of cotton yarn and holds the Central Excise Registration. It has been availing cenvat credit on capital goods and input services which are used in or in relation to manufacture of final products, under Cenvat Credit Rules, 2004 (for short "Rules, 2004"). During the period from August 2006 to April 2007 also, it had availed cenvat credit on certain capital goods/services. The auditors of Central Excise, Chandigarh-II conducted an audit of the record of the appellant on 26.08.2009 and observed that in contravention of the Rules, 2004, the appellant had availed certain cenvat credits. A show cause notice dated 03.08.2010 was issued against it. The appellant responded to the same. The adjudicating authority vide order dated 12.12.2011 confirmed demand of a sum of Rs. 15,16,552/- against the appellant besides imposing penalty of equivalent amount and claiming interest. The appellant preferred an appeal before the First Appellate Authority. The same was partly allowed vide order dated 04.02.2013 and demand of a sum of Rs. 7,67,824/- was disallowed whereas the remaining demands....
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....dit availed by it on GP sheets etc. and that the order passed by the Tribunal was liable to be set aside. To fortify his argument, learned counsel for the appellant has placed reliance upon authorities cited as Thiru Arooran Sugars v. CESTAT, Chennai, 2017 (355) E.L.T. 373 (Mad.); Commissioner of Central Excise & Service Tax, Tiruchirapalli v. CESTAT, Chennai, 2017 (356) E.L.T. 201 (Mad.); Mundra Ports & Special Economic Zone Ltd. v. C.C.E. & CUS., 2015 (39) S.T.R. 726 (Guj.); M/s Vandana Global Limited v. Commissioner, Central Excise and Customs, Central Excise Building, Dhamtari Road, Tikrapara, Raipur (Chhattisgarh) and another, 2018 (16) G.S.T.L. 462 (Chhattisgarh) and Commissioner of Central Excise, Jaipur v. Rajasthan Spinning & Weaving Mills Ltd., 2010 (255) E.L.T. 481 (S.C.). 4. Per contra, it was argued by learned counsel for the revenue that the impugned order was well reasoned and did not warrant any interference. The appellant had claimed benefit of cenvat credit on GP sheets and aluminum sections on the plea that humidification plant was machinery as a whole and not a plant and GP sheets etc. used for making duct for the same, were to be treated as capital goods thoug....
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....ommonly known as petrol, used 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 in or in relation to manufacture of final products or for any other purpose, within 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:- Inputs include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer" 8. It is relevant to mention here that the Rules, 2004 were amended w.e.f. 07.07.2009 and the Explanation 2 of Rule 2 (k) was also amended to include as follows:- "Input includes goods used in the manufactur....
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....goods. To form this opinion, the Tribunal is shown to have heavily relied upon Modern Steels Ltd.'s case (Supra) wherein cenvat credit had been claimed by the assessee on CTD bars, angles, channels, MS bar, joists and shapes which were used by it for its project work, by treating them as capital goods. The Tribunal had observed that since the words "plant" and the expression "components, spare parts and accessories of the plant" which were used in the erstwhile Rule 57 of Rules, 1944 were kept out of consideration in the new rules, therefore, these goods which fell under Chapter 72 could not be considered as spare parts, components or accessories and were not eligible for cenvat credit. 12. On perusal of the order passed by the Tribunal, it has been revealed that the judgment pronounced in Rajasthan Spinning & Weaving Mills Ltd.'s case (Supra) by Hon'ble Supreme Court had not been placed before and brought to the notice of the Tribunal. In that case, modvat credit had been claimed by the assessee on steel plates and MS channels that were used for fabrication of chimney for diesel generating set of the assessee company which was engaged in the business of manufacturing yarn. The re....
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....ted which required use of cement, steel, MS plates, angles and channels etc. The appellant availed cement credit not only qua cement and steel but also vis-a-vis MS plates, angles and channels etc. as they were duty paid inputs. The revenue found fault with the same and issued show cause notices. It was held that the structures which was used to keep in position the plant and machinery, cement, as also, iron and steel which were used to erect foundations to hold the plant and machinery could not only be treated as "capital goods" but also be treated as "inputs" as these items supported the plant and machinery that was used in manufacturing process and were an integral part of the plant and machinery. Accordingly, the assessee was held entitled to get benefit of cenvat credit on the same as they fell within the scope and ambit of Section 2 (a) (A) and 2 (k) of the Rules, 2004. Similar observations were made by the High Court of Chhattisgarh in M/s Vandana Global Limited's case (Supra), by High Court of Gujarat at Ahmedabad in Mundra Ports & Special Economic Zone Ltd.'s case (Supra) and by High Court of Madras in Commissioner of Central Excise & Service Tax, Tiruchirapalli v. CESTAT,....