TaxTMI 
TaxTMI 
TaxTMI 
2023 (8) TMI 1231
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....such as angles, channels, plates, semi-rolled plates, chequered coils & joists, MS beams, MS Flats, HR sheets, MS bars, MS rods, etc. The procurement and utilization of the said goods within the factory of the Appellant is not in dispute and the said goods were duly accounted for in the books of the Appellant. The said items were utilized by the Appellant for installation and fabrication of various capital goods and structural support thereof. The total quantity procured was 37,718.782 MT and out of which only on 16,908.437 MT CENVAT Credit was availed and on remaining quantity of 20,810.245 MT credit was not taken as the same were used in civil structure. The detail of the credit taken on items was also furnished with the ER-1 returns filed regularly. These technological structures were intended to provide support to the various capital goods installed in the factory, to hold them firmly and were essential for functioning of these machineries, thus, becoming integral parts of the capital goods. The Appellant got the said capital goods and structures fabricated through contractors using the aforesaid steel items for fabrication of support structures like Lime Stone crusher, Pere-he....
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....us cases, necessitating reference to Larger Bench in the case of Vandana Global, hence the extended period of limitation is not invokable. He further submitted that in such legal complex situation the Appellant cannot be fastened with the allegation in account of mala fide intention. Learned Authorized Representative for the Department justified the impugned order and submitted that the appeal filed by the Appellant, being devoid of any merits, may be dismissed. 5. Heard both sides and perused the appeal records. 6. We find that the period involved in the present dispute pertains to 2005-06 to August 2008. At that relevant time, Explanation 2 to Rule 2(k) of the CENVAT Credit Rules, 2004 provided that inputs include goods used in the manufacture of capital goods, which are further used in the factory of manufacturer. The aforesaid Rule 2(k) was amended vide the Notification No.16/2009-CE(NT) w.e.f. 07.07.2009. Explanation 2 to Rule 2(k) provides that inputs include goods used in the manufacture of capital goods which are further used in the factory of manufacturer, but shall not include cement, angles, channels, CTD bar or TMT bar and other items used for construction of company,....
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....ssioner of C.Ex. Tiruchirapalli v. India Cements Ltd. - [2012 (285) E.L.T. 341 (Mad.)], Mundra Ports & Special Economic Zone Ltd. v. C.C.E. & Cus. -[2015 (39) S.T.R. 726 (Guj.)], and Thiru Arooran Sugars v. CESTAT, Chennai - [2017 (355) E.L.T. 373 (Mad.)]. 11. In order to consider rival submissions, first of all we would like to refer Rule 2(k) of CENVAT Credit Rules, 2004 which defines "input". This Rule as framed initially in 2004, read as under:- "2(k) "input" means all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly 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 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 whatsoeve....
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....ortion in the execution of a works contract or construction service as listed under clause (b) of Section 66E of the Act; (C) capital goods, except when,- (i) used as parts or components in the manufacture of a final product; or (ii) the value of such capital goods is up to ten thousand rupees per piece; (D) motor vehicles; (E) any goods, such as food items, goods used in a guesthouse, residential colony, club or a recreation facility and clinical establishment, when such goods are used primarily for personal use or consumption of any employee; and (F) any goods which have no relationship whatsoever with the manufacture of a final product. Explanation. - For the purpose of this clause, "free warranty" means a warranty provided by the manufacturer, the value of which is included in the piece of the final product and is not charged separately from the customer." 15. From the perusal of the circulars dated 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 Re....