Case Law Details
J. K. Cement Works Vs Commissioner, Central Goods & Service Tax (CESTAT Delhi)
Commissioner (Appeals) disallowed Cenvat credit totalling Rs. 2,50,195/-, which was mainly on account of iron and steel structure, tower material, steel casting.
Appellant inter alia urges that admittedly these items have been used by the appellant in the factory of production. These items have been used in repair and maintenance of the existing plant and machinery and also in fabrication of structural to support the manufacturing machinery, without which no manufacture can take place of the excisable goods.
The larger Bench of this Tribunal in Mangalam Cement Limited vs. CCE, Jaipur-I reported in 2018 (360) ELT 737 (Tri.LB) where the issue before the larger Bench was whether on Cement and Steel items used for foundation, for installation of machinery, which is embedded to earth, the assessee is entitled to avail Cenvat Credit on steel items in terms of Rule 2(k)/2(a) of the Cenvat Credit Rules, 2004, or not, the question has been decided in favour of the assessee.
Following the ruling of Hon‟ble Chattisgarh High Court in Vandana Global Ltd., (supra) and larger Bench in Mangalam Cement Ltd., (supra), I hold that the appellants are entitled to cenvat credit on the items of iron and steel etc.
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