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2016 (1) TMI 917 - AT - Central ExciseEligibility for CENVAT credit - iron and steel items used for fabrication of components / accessories of various machinery like rotary klin, rotary cooler, conveyor systems, raw material preparation plant, power plant and pollution control equipment - Held that:- As in the case of Rajasthan Spinning Mills (2010 (7) TMI 12 - SUPREME COURT OF INDIA ) held that steel plates and MS channels used in the fabrication of chimney would fall within the ambit of capital goods. In the case of CCE vs. India Cements Ltd. [2014 (7) TMI 881 - MADRAS HIGH COURT ] held that MS plates, angles, channels etc. used in the erection of various machineries such as electrostatic precipitator for raw mill project, additional fly ash handling system, MMD crusher, etc. can be considered as eligible for cenvat credit as component of capital goods. The Hon’ble High Court held after examining the various case laws in favour of assessee. Applying this principles, we find that the allegation in the show cause notice that steel items used by the appellant are neither components nor spares nor accessories is not sustainable. Applying the principle of “user test” laid down by the Hon’ble Supreme Court in Jawahar Mills case (2001 (7) TMI 118 - SUPREME COURT OF INDIA ) the angles, beams and channels used in the making and fabrication of these capital goods are found eligible for Cenvat credit.- Decided in favour of assessee.
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