TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 177
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....er 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. (ii) all goods except light diesel oil, high speed diesel oil and motor spirit and motor vehicles used for providing any output services. Explanation 1.- 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. 1.1 The goods used for manufacture of 'Capital Goods' was included in the scope of 'Inputs'. This fact is not in dispute. However, w.e.f. 07.07.2009 (i.e. after the period in dispute of the present case), the Explanation - 2, which previously explained that goods used for manufacture of 'Capital Goods' are included in the scope of 'inputs' was a....
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....nal vide order dated 03.10.2017. However, once again the Show-cause-Notice was confirmed vide Order-in-Original dated 06.07.2020 and the same Order-in-Original was upheld by Order-in-Appeal dated 28.10.2020. The present appeal is against the said Order-in-Appeal. 2. It was submitted by the appellant that the judgement of Larger Bench of Tribunal in the case of Vandana Global Limited (supra) stands reversed by Hon'ble Chhattisgarh High Court vide judgement reported at 2018 (16) GSTL 462 (Chhattisgarh). And it was held that goods like angles, joist, beams, bars, plates which go into fabrication of structures embedded to earth are to be treated as 'inputs' used in relation to their final products as inputs for 'Capital Goods' during the period prior to amendment i.e. prior to 07.07.2009. Thus, the matter is settled in favour of the Appellant herein. Similarly, same view was also taken by Hon'ble Gujarat High Court in the case of Mundra Ports & Special Economic Zone Limited versus C.C.E. & Cus. Reported at 2015 (39) STR 726 (Guj.). Hon'ble Gujarat High Court has observed that the view of Larger Bench of the Tribunal was based on conjectures and surmises. 3....
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.... Tariff Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified e(i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials: (vi) tubes and pipes and fittings thereof; and (vii) storage tank used (1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or (2) for providing output service;" There is no scope of permitting usage of TMT Bars, MS Channels, MS Beams etc as it neither fall under Chapter 82, 84 and 84 or 90 of Central Excise Tariff Act, 1985 now in the nature of materials which are permitted to be considered as capital goods as per the scope of definition as indicated above. The party, on the other side is of the view that explanation 2 of Rule 2(k) permits sufficient scope for credit to be allowed as they are not of the nature which are used for construction of factory shed or allowing of fabrication for making a construction for support of capital goods. They in support rely on the decision the decision of Vandana Global which after initial pronouncement of a Larger Bench of the Tribunal as reported....
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....ioner of Central Excise, Raipur as reported in 2019 (16) GSTL 462 Chattisgarh. The relevant para of the decision which, inter alia, is based on the decision of Hon'ble Gujarat High Court in Mundra Ports and Special Economic Zone Limited vs CCE & Customs reported in 2015 (39) STR) 726 (Gujarat) decided the matter as follows: "2. The short facts of the present case are that M/s. Mundra Port and Special Economic Zone Limited, Mundra Port, Mundra - appellant herein is inter alia engaged in providing Port Services. The appellant is registered for Service Tax under the taxing entries of "Port Services", "Storage and Warehousing Services" and "Cargo Handling Services". The appellant uses/consumes various input services during the course of providing output services. The appellant avails Cenvat credit of the Service Tax paid on such input services. A show cause notice No. V.ST/AR-G.dham/COMMR/035/2006, dated 17-4-2006 was issued wherein the appellant was asked to show cause as to why credit of the Excise duty paid on the cement and steel used in the construction of new jetties and other commercial buildings should not be denied to them. The appellant filed a reply dated 5-7-2006 to the s....
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....ion of law : "Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in rejecting the claim of the assessee in light of the provisions of Rule 2(k) of the Cenvat Credit Rules, 2004?" 5. We have heard Mr. Hardik Modh, learned counsel for the appellant and Mr. Y.N. Ravani, learned counsel for the respondent. 6. Before deciding the question, we deem it appropriate to extract Rule 2(k) and 2(l) of the Cenvat Credit Rules, 2004. "Rule 2(k) "input" means - (i) 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 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 p....
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....-7-2009, the date on which it was notified by the Central Government from the date of the notification. According to learned Counsel for the appellant, this amended definition would apply only to the factory or manufacturer and would not apply to the service provider. According to him, either before the amendment made in the year 2009 or thereafter, the appellant was neither factory nor manufacturer and he has only constructed jetty by use of cement and steel for which he was entitled for input credit as jetty was constructed by the contractor, but the jetty is situated within the port area and the appellant is a service provider. According to the appellant, his case is squarely covered by the judgment of the Division Bench of the Andhra Pradesh High Court in Commissioner of Central Excise, Visakhapatnam-II v. Sai Sahmita Storages (P) Limited, 2011 (270) E.L.T. 33 (A.P.) = 2011 (23) S.T.R. 341 (A.P.) wherein in Paragraph 7, it has been clearly held that a plain reading of the definition of Rule 2(k) would demonstrate that all the goods used in relation to manufacture of final product or for any other purpose used by a provider of taxable service for providing an output service are ....