2025 (11) TMI 1019

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....rein Central Excise duty amounting to Rs.17,05,66,440/- pertaining to the period from January 2012 to March 2016 has been confirmed, along with interest. 1.3. As the issues involved in both these appeals are common, they are taken up together for decision by a common order. 2. The facts of the case are that M/s. Steel Authority of India Limited, Bokaro Steel Plant (hereinafter referred to as the 'appellant') is inter alia engaged in the manufacture of Steel products viz. Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates and Galvanised Plain and Corrugated Sheets, falling under Chapter 72 and 73 of the Central Excise Tariff Act, 1985. During the period from March 2008 to March 2016, the Appellant utilized various iron and steel items such as MS Flats, Beams, Channel, Plates, Angle, MS Bar & Rods, Structures, Rounds, Fabrication of Steel Structure, Cover Plant, Tuyere Stock, Belt Conveyer etc., falling under Chapter 72 of the Central Excise Tariff Act, 1985 ('impugned goods') for the purpose of fabrication of capital goods connected with the installation of Coupled Picking Line, Tandem Coil Mill, Hot Dip Galvanz....

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....erial Handling System The system consists of number of items such as gear box, fluid coupling, Gea Coupling, Brakes, Conveyor Belt, Pulley, Scrapper, Belt Weight Scale, Metal Detector, Suspended Magnales, Head Frame Structure, Tail Frame Structure, Driver Base Frame, Skirt Board, etc, and it is an integral part of the Raw Material Handling System in the plant of the Appellant. M/s. TenovoSpA and M/s. Arcum Engineering Pvt. Ltd. Roll Shop for Cold Rolling Mill Such machine is used for processing hot-rolled steel coils to reduce their thickness, improve surface quality, and enhance mechanical properties such as strength and hardness. 2.2. The appellant utilized various items such as MS Flats, Beams, Channels, Plates, Angles, Rounds, Fabrication of steel structure, Cover Plate, Fabrication and Painting, Beam, Duct Structure, Ring, Steel Plate, Tuyere stock, Jig set erection, Technical Structures, etc., for fabrication and erection of the capital goods. It is also pertinent to note that since the appellant manufactures various iron and steel products, such items were also used captively for the erection and fabrication of capital goods, and the appellant availed CENVAT C....

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....d as components, spares and accessories of machineries. Further, it has been pointed out that the impugned Orders have relied upon the decision of the Larger Bench of the Tribunal in the case of Vandana Global Ltd. (supra) to deny the credit. However, the appellant submitted that the said decision has been overruled by the Hon'ble Chhattisgarh High Court in Vandana Global Ltd. Versus Commissioner of C. Ex. & Cus., Raipur [2018 (16) G.S.T.L. 462 (Chhattisgarh)]. Thus, it is the case of the appellant that the entire basis of the impugned orders is legally untenable, as on date. 3.2. The appellant further submits that the issue involved in the instant appeals, i.e., denial of CENVAT Credit on various Iron and Steel items used for fabricating of capital goods and its structural parts/ accessories, etc., is a periodical issue and the Department had initiated proceedings for various periods in respect of various units of the appellant-company. It has been brought to our notice that in the appellant's own case, the CESTAT, Kolkata in the case of M/s. Steel Authority of India Limited v. Commissioner of CGST & Central Excise, Bolpur [2024-VIL-02-CESTAT-KOL-CE] has decided the issue i....

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....we note that the issue is no longer res integra as the decision of the Larger Bench of the Tribunal in Vandana Global Ltd. (supra) has been overruled by the Hon'ble Chhattisgarh High Court in Vandana Global Ltd. Versus Commissioner of C. Ex. & Cus., Raipur [2018 (16) G.S.T.L. 462 (Chhattisgarh)]. 6.2. We also find that the same view has been taken by this Tribunal in appellant's own case as reported in 2024-VIL-02-CESTAT-KOL-CE wherein it has been decided that CENVAT Credit had been rightly availed by the appellant on the MS Plates, which were used in the fabrication of capital goods. The relevant portion of the said decision is extracted below: - "2. M/s Steel Authority of India Ltd. ('Appellant') is engaged in the business of manufacturing iron and steel products. During the underlying period, the Appellant cleared excisable goods manufactured by it on payment of excise duty leviable thereon, by utilizing CENVAT Credit of inputs, capital goods and input services in accordance with the CENVAT Credit Rules, 2004 ('CCR, 2004'). During this period, the Appellant procured various structural steel items (plates falling under Chapters 69, 72, 73, 84 and 8....

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....#39;inputs' is defined under Rule 2(k) of the CCR, 2004. The said term has a wide coverage and practically includes all goods used in the manufacture of final products. Reliance is placed on the decision of the Hon'ble High Court in the case of Hindustan Zinc v. UoI, 2008 (228) ELT 517 (Raj.) - 2008-VIL-88-RAJ-CE wherein it has been categorically stated that where any particular process is integrally connected without which manufacturing is not viable, then the goods which are used therein will be eligible for availment of credit. The impugned order has relied upon Notification No. 16/2009-CE (NT) dated 7.7.2009 which amended explanation 2 to Rule 2(k) of the CCR, 2004 to specifically exclude angles, channels, TMT bards used for construction of factory and laying of foundation or making of structures for support of capital goods. In this regard, we find that the plates in question were not used for foundation, construction of factory or support structure. Following the decision of the Hon'ble Chattisgarh High Court, we hold that the 'plates' are inputs for the capital goods and hence they are eligible for the credit availed on the 'plates' as 'inputs....