TaxTMI 
TaxTMI 
2025 (4) TMI 1594
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....Rules, 2004 (hereinafter referred to as CCR) the same would qualify as inputs under Explanation 2 to Rule 2(k) of the CCR. 3. Learned Counsel for the appellant stated that the aforementioned goods were indeed 'components' and 'accessories' of the capital goods used in its factory. It is also emphasised that the amendment made to the definition of 'capital goods' did not and does not in any manner effect the eligibility of the goods used in the instant case for the purposes of availing credit given the nature of use as these are held to be eligible for credit in several judgments wherein the amendment has been also held to be inapplicable to such use of the goods. Hence, the amendment made to the definition of capital goods is of no significance to deny credit. He has relied on the following case laws: i) Grasim Industries Ltd., Vs CCE, [2004 (176) ELT 265 (T)] as affirmed by the Hon'ble Supreme Court in Grasim Industries Ltd., Vs CCE, [2005 (179) ELT A38 (SC)] ii) Spenta International Ltd., Vs CCE, [2007 (216) ELT 133 (Tri-LB)] iii) Binani Cement Vs CCE, [2002 (143) ELT 577 (T)] iv) Vandana Global Ltd., Vs CCE [2018 (16) GSTL (Chattisgarh)] v) Thiru Arooran Sugars Vs CES....
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....s, plates, HR Sheets were used as platforms for easy access to operate the machine and conveyor frames for specific work as to convey the materials on the polishing line; M.S. Plates were used as making ducting pipes for transporting the gas from coal gasifier plant to spray drier; M.S. Channels, RS Joists were used as tray supports for electrical cable to supply power to the machinery; Linear Slide Rail were used for as spare part of the sorting and packing machinery being used to carry the packing material and M.S.Square Mesh were used for as safety guard frame used for ball mill. As the impugned goods are not specific goods under the Cenvat Credit Rules and the same are not directly used in the manufacture of their final product, credit on the impugned goods is rightly denied." 7. Learned Counsel for the appellant argued that the goods as mentioned above are classifiable as "capital goods" or "input" as defined under Cenvat Credit Rules, 2004. Capital goods defined by Rule 2(a) of Cenvat Credit Rules, 2004 as thus: RULE 2. Definitions. - In these rules, unless the context otherwise requires, - (a) "Capital goods" means :- (A) the following goods, namely :- (i) all good....
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....e of equipment the item is known as 'component' and when it is used for replacing a worn or defective component it is understood as "Spares". Therefore, this case law is also not applicable in this appeal. 9. Learned Counsel for the appellant also submits that in their own case in Appeal No. E/2103/2012, RAK Ceramics India Pvt Ltd., vide Final Order No. A/30453-30455/2018 this Bench had decided in their favour and matter is similar to the instant case. On the other hand, Learned AR submits that in that case, appellant stated that the goods were used for fabrication of various machinery and supporting structures. Perused the Order in that case in which appellant submits that goods were used for fabrication of various machinery and supporting structures whereas, in the instant case the goods are used as 'components' and 'accessories' of the capital goods which were used for manufacturing the final products. Therefore, in both cases, ground taken by the appellant is different, so distinguishable. 10. Hon'ble Allahabad High Court, in the case of Upper Ganges Sugar & Industries Ltd., Vs CCE [2013 (293) ELT 186 (ALL)] held that "Cenvat Credit on HR/NS/GC sheers plates/angles/channels/s....
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....nstruction 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 upto 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 12. Learned Counsel for the appellant further argued that the aforesaid goods used for laying of foundation or making of structures for support of capital goods, came to be excluded by an amendment (insertion) made to Explanation 2 to the said Rule 2(k) vide Notification No. 16/2009-CE (NT) dated 07.02.2009. The said amendment will not apply to the facts of the present case since the Appellant had received the goods in its factory during the period December, 2008 to June, 2009 while the said amendment was prospective in nature and applicable only with effect from 07.07.2009 as held b....