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2016 (7) TMI 1101 - CESTAT NEW DELHICenvat credit - M.S. Angle, M.S. Channels, CTD Bars, Joists, Flats, Plates, HR Coils, Fish Plates, Aluminium Sheets in coils, oxygen gas, welding electrodes etc. used for fabrication of supporting structure of the capital goods - Held that:- Appellant is entitled to avail Cenvat Credit on the disputed inputs viz.,M.S. Angle, MS Channels, CTD Bars, Joists, Flats, Plates, HR Coils, Fish Plates, Aluminium Sheets in Coils, etc. for fabrication of components and accessories viz., Klin, Cooler or Material Handling Systems within the factory premises as capital goods/components/accessories of capital goods for the manufacture of Sponge Iron in the Appellants manufactory in as much as the test of usage and utility as envisaged in the aforesaid decisions would be the only relevant factory for determining the admissibility of Cenvat credit. Since the Appellant have demonstrated the use of disputed inputs for fabricating the aforesaid capital goods to aid the process of manufacture of Sponge Iron for the purpose of availment of Cenvat Credit, the Order impugned passed by the lower authority is clearly not sustainable on merits. With regard to oxygen gas and welding electrode, the ld. Commissioner (Appeals) has allowed the Cenvat credit to the respondent by placing reliance on the judgment of Hon'ble Rajasthan High Court in the case of Hindustan Zinc Ltd. -Vs.- Union of India, (2008 (7) TMI 55 - HIGH COURT RAJASTHAN) and the decision of Mangalore Refinery & Petrochem Ltd., (2007 (7) TMI 166 - CESTAT, BANGALORE). - Decided in favour of assessee.
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