2013 (7) TMI 494 - CESTAT BANGALORE

‘Capital goods’ as defined under Rule 2(a) of the CENVAT Credit Rules (CCR), 2004 for purposes of CENVAT credit - MS angles, plates and rounds used for fabricating structural support to plant and machinery in factory – Held that:- In the case of Rajasthan Spinning & Weaving Mills Ltd. [2010 (7) TMI 12 - SUPREME COURT OF INDIA], the Hon’ble Supreme Court found that the DG set fell under Heading No.85.02 Chapter 85, of First Schedule to the Central Excise Tariff Act and ipso facto got covered under Sl. No.3 of the table ibid. Court further noted that the chimney attached to the DG set was undisputedly covered by Sl. No.5 of the table ibid. On this basis, it was held that the chimney was an integral part of the DG set and, therefore, ms channels, plates, etc., used in its fabrication were to be treated as accessories in terms of Sl. No.5 of the table ibid - The facts of the present case are perfectly analogous to those of Rajasthan Spinning & Weaving Mills Ltd. (supra). It is not in dispute that ms angles, plates, etc., were used to fabricate structural support for machinery which was used for manufacturing excisable goods. It is, again, not in dispute that the machinery is squarely covered by clause (i) of Rule 2(a)(A) of the CCR, 2004 – Consequently held that the ms angles, plates and rounds used for fabricating structural support for machinery would qualify to be’capital goods’ for CENVAT credit – Decided against the Revenue.