Vandana Global, no more valid?
REMEMBER the decision of the Larger Bench of the CESTAT in Vandana Global Ltd v CCE, Raipur (2010-TIOL-624-CESTAT-DEL-LB). The Larger Bench held that 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. This order was delivered on 30 th April 2010.
But the Supreme Court in CCE, Jaipur Vs. Rajasthan Spinning & Weaving Mills Ltd. - held that MS channels, plates, etc., used in its fabrication, were capital goods. This judgement was delivered on 9th July 2010 – that is after the Larger Bench decision.
Now, a Tribunal Bench has held that, in view of the Supreme Court judgement, the view of the Larger Bench is no longer valid.
We will bring you this order tomorrow.