The Principal Commissioner vs. M/S Aggrawal Sponge PVT. LTD.
Held
The High Court held that the issue in this tax appeal is squarely covered by a previous decision of a Coordinate Bench in the matter of M/s Vandana Global Limited Vs. Commissioner, Central Excise and Customs. In that case, structural steel items were held to be inputs, eligible for CENVAT credit, relying on decisions of the Gujarat High Court in M/s Mundra Ports & Special Economic Zone Ltd. Vs. CCE & Cus. and the Madras High Court in M/s Thiruarooran Sugars Vs Customs, Excise and Service Tax Appellate Tribunal. The Court found that these structural steel items would be considered inputs, either before or after the clarificatory amendment on July 7, 2009, to the CENVAT Credit Rules, 2004. Consequently, the appeal filed by the Revenue was dismissed on the same terms as the Vandana Global case.
Facts
The Principal Commissioner, CGST and Central Excise, Raipur (Petitioner) challenged an order of the Tribunal that allowed M/s Aggrawal Sponge Pvt. Ltd. (Respondent) to claim CENVAT credit of Rs. 25,20,652/-. The credit was for items like M.S. Angles, Channels, Joints, and Oxygen, which the Tribunal treated as inputs. The Petitioner argued against this treatment. The Respondent did not appear before the High Court. The High Court noted that similar items had been treated as capital goods or inputs by a Division Bench of the same court in a previous case, M/s Vandana Global Limited Vs. Commissioner, Central Excise and Customs.
Key Issues
1. Whether structural steel items, such as M.S. Angles, Channels, and Joints, and oxygen, can be treated as 'inputs' for the purpose of availing CENVAT credit, considering the provisions of the CENVAT Credit Rules, 2004. Petitioner's Argument: The Petitioner, represented by Shri Maneesh Sharma, Advocate, challenged the Tribunal's order allowing CENVAT credit. The Petitioner's contentions are not explicitly detailed in the provided text, but the appeal itself signifies disagreement with the Tribunal's finding. Respondent's Argument: The Respondent did not appear before the High Court, and therefore, no arguments were recorded on their behalf.
Sections Cited
CENVAT Credit Rules, 2004
AI-generated summary — verify with the full judgment below
1 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR TAXC No. 18 of 2018 The Principal Commissioner, CGST And Central Excise, GST Bhavan, Dhamtari Road, Tikrapara, Raipur, Chhattisgarh. ---- Petitioner Versus M/s Aggrawal Sponge Pvt. Ltd. Plot No. 91-92 Siltara, Industrial Area, Phase-II, Raipur, Chhattisgarh. ---- Respondent For Appellant Shri Maneesh Sharma, Advocate. For Respondent None. Hon'ble Shri Justice Prashant Kumar Mishra Hon'ble Shri Justice Ram Prasanna Sharma Order On Board by Hon'ble Prashant Kumar Mishra J. 06/04/2018
Challenge in this appeal is to the said part of the Tribunal's order whereby the respondent has been allowed a CENVAT Credit of Rs. 25,20,652/- by treating items e.g. M.S. Angles, Channels, Joints and Oxygen etc. as input on the strength of decision rendered by the Tribunal in the matters of M/s Singhal Enterprises Pvt. Ltd. Vs. CCE, Raipur- 2016-TIOL-2451- CESTAT-DEL, M/s Lafarge India Pvt. Ltd. Vs. CCE, Raipur- 2016-TIOL- 2875-CESTAT-DEL. & CCE, Guntur Vs. Andhra Cements Ltd.-2009 (247) ELT 651 (Tri.-Bang.).
Admittedly, the subject items are commonly known as structural steel items, which have been held to be capital goods or input by D
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