2025 (7) TMI 211

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....al against the Order-in-Original dated 28.03.2012 in appeal no. ST/1955/2012. They are also in appeal against other Order-in-Originals periodically issued to them from time to time on the same issue. 2. The issue, in brief, is that Department alleged that the appellant have availed Cenvat Credit of duties paid in the imported parts of the dredger as capital goods. However, the Adjudicating Authority held that since the parts imported by the Dredging Corporation of India Ltd., were used for the repairs of the dredgers and the dredgers were not used for provision of a taxable output service, the said goods were not qualified as capital goods under sub-clause (i) of Rule2(a)(A) of Cenvat Rules. He also held that these goods were not used fo....

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....essed in their Shreeji Shipping Vs CCE & ST, Rajkot [2023 (9) TMI 297 CESTAT-Ahmadabad], KB Shipping Vs CCE & ST, Rajkot [2024-VIL-144-CESTAT-AHM-ST]. He submits that these judgments have identical question of law and facts related thereby as covered in present appeal and therefore the ratio of the aforesaid decisions of the Tribunal and Hon'ble Supreme Court are squarely applicable to the present appeals. 5. Learned AR, on the other hand, reiterates the findings given by the Commissioner (Appeals). 6. Heard both the sides and perused the records. 7. We find that the short question for decision is whether the items imported by the appellant could be considered as input or capital goods for the purpose of taking credit when the same....

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....hereof are inputs under Rule 2(k) by observing that the towers are admittedly immovable structures and hence ipso facto nonmarketable and non-excisable and these do not lead to manufacture of goods and that towers and PFBs certainly are not used for providing mobile services. By relying on Explanation-2 to Rule 2(k) which provides that input includes goods used in the manufacture of capital goods which are further used in the factory of the manufacturer, the CESTAT held that these items are not inputs. However, in our view, invoking Explanation-2 is neither appropriate nor necessary as sub-clause (ii) of Rule 2(k) itself clearly provides that "input" means all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly kno....