TaxTMI 
TaxTMI 
2026 (2) TMI 903
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....tion, installation, manufacture and erection of capital goods and other equipments essential for the establishment of the Integrated Iron & Steel Plant consisting of Sinter Plant, Pillet Plant, Blast Furnace and other ancillary plants for use in the manufacture of their finished products. The appellants maintained proper books of accounts. The availment of credit was also reflected in the E.R.-I Returns. The first E.R.-I Return for the month of May, 2008 disclosed the accumulated availment of credit of Rs.2,89,33,878/- and continued filing E.R.-I Return till May, 2009 claiming total CENVAT credit of Rs.3,78,69,610/- on iron and steel items. No dispute was raised by the Department. In the return E.R.-1 for September, 2009 accumulated CENVAT credit on Cement and TMT Bar was disclosed as Rs.1,43,34,650/-. For the first time, vide letter dated 13.01.2010 requested for submission of documents on the strength of which the appellants had taken credit. The appellants thereafter submitted the details of the procurement of the said inputs and utilisation of the same supported by Charter Engineer's Certificate. The appellants were thereafter vide letter dated 11.02.2010 issued by the Supe....
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....od May, 2008 to August, 2010. The use of the said inputs were also duly certified by Chartered Engineer's Certificate. The said inputs were used satisfies the criteria of inputs used in or in relation to the manufacture of dutiable final product. The said goods were squarely covered by the definition of inputs as defined in rule 2(k) of the CENVAT Credit Rules, 2004. The demand has been raised on the basis of the Notification dated 07.07.2009 inserting "but shall not include cement, angles, channels, Centrally Twisted Deformed Bar (CTD) or Thermo Mechanically Treated Bar (TMT) and other items used for construction of shed, building or laying of foundation or making of structures for the support of capital goods". The said insertion makes the position amply clear that prior to the issuance of the said Notification dated 07.07.2009, the items mentioned in the insertion were included within the definition of inputs. The appellants relied on a number of decisions to substantiate their contentions that the said goods inputs and were used in the factory of manufacture. The said inputs were used directly or indirectly or in relation to the manufacture of the excisable goods and hence,....
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....Notification No.16/2009-CE(NT) dated 07.07.2009 to say that the said Notification is applicable, therefore, the cenvat credit was denied. He submits that the said Notification is not applicable retrospectively as held by the Hon'ble Chhattisgarh High Court in the case of Vandana Global Ltd. as reported in 2018 (16) GSTL 462 (Chhattisgarh). Therefore, he submits that for the period prior to 07.07.2009, they are entitled to take the cenvat credit on the items in dispute. Further, it is his submission that the item in dispute has been used for construction of storage tanks and machineries and without those structures/machineries, the same cannot be put into use and therefore, they are eligible to take cenvat credit. He, therefore, submits that the cenvat credit sought to be denied on the ground that the cenvat credit was not taken immediately. It is his submission that as per Cenvat Credit Rules, 2004, there is no time limit to take the cenvat credit. Time limit of one year was came into effect on 01.09.2014, therefore, prior to 01.09.2014, the assessee is entitled to take the cenvat credit. In view of this, it is prayed that the impugned order is to be set aside. 4. On the other h....
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....ction refers to credit of duty paid on goods used in, or in relation to the manufacture of excisable goods. Hence, 'capital goods' defined in the CENVAT Credit Rules in the context of providing credit of duty paid, have to be excisable goods. Whether a particular plant or structure embedded to earth can be considered as excisable goods or not has to be determined in the light of the decisions of the Hon'ble Supreme Court on the issue, which is no longer res integra. (b) Goods like cement and steel items used for laying 'foundation' and for building 'supporting structures' cannot be treated either as inputs for capital goods or as inputs in relation to the final products and therefore, no credit of duty paid on the same can be allowed under the CENVAT Credit Rules for the impugned period." 4. In the light of the contents of the impugned order of the Tribunal and submissions of the assessee and the Revenue following substantial questions of law are formulated for consideration : (A) Whether the terms 'capital goods' excludes the structures embedded to earth? (B) Whether the goods like angles, joists, beams, bars, plates, which go into fabrication o....
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....ll include the power to give retrospective effect to rebate of duties on inputs used in the export goods from a date not earlier than the changes in the rates of duty on such inputs. Though the power to make rules include the power to give retrospective effect, while doing so the provision under consideration is neither made retrospective nor could it be treated as one. 8. We are in complete agreement with the ratio of Mundra Ports (supra) and M/s. Thiruarooran Sugars (supra) on all fours. 9. Resultantly, we answer the questions formulated in these appeals in favour of the assessees and against the Revenue. 10. In the result, the appeals of the assessees are allowed setting aside the Tribunal's decision impugned in each of those appeals. The appeals filed by the Revenue are dismissed. However, no order as to costs." Following the decision of the Hon'ble Chhattisgarh High Court in the case of Vandana Global (supra), we hold that the Notification No.16/2009-CE(NT) dated 07.07.2009 is applicable prospectively and no demand on the items in question prior to 07.07.2009 is sustainable. Accordingly, the appellant has correctly taken the cenvat credit on the i....
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.... I find that dismissal of certificate issued by Chartered Engineer by both the lower authorities that too summarily, seems to be not in consonance of law. Further, receipt of goods and thereafter used for fabrication as per Chartered Engineer certificate is not contested but only contested on a point that the inputs do not fall under the category of capital goods and hence not eligible for Cenvat credit, will not carry any further of the Revenue. On the other hand, Ld. Counsel was correct in stating that the judgments of Hon'ble High Court of Karnataka in the case of SLR Steels Ltd. and the Hon'ble High Court of Madras in the case of Madras Aluminium Co. Ltd. would be supporting the arguments put forth by the appellant. 8. Since the issue is decided by the Higher Courts, I find that the impugned order is unsustainable and liable to be set aside, except for the credit of duty paid on cement. 9. Impugned order is set aside and appeal is allowed." Again, the same view has been taken by this Tribunal in the case of Commissioner of Central Excise & Service Tax, Raipur Vs. Gagan Resources Pvt. Ltd. reported in 2016 (341) ELT 363 (Tri.-Del.), wherein this Tribunal has....