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2019 (9) TMI 1378 - AT - Central ExciseCENVAT Credit - capital goods - HR Coil, HR Plate, MS Bar, MS Flat, MS Angle etc. (structural items) used for installation/commissioning of the distillery division and for repairs and maintenance of various capital goods within the sugar division - time limitation - HELD THAT:- The Certificate dated 2 November 2011 from the Chartered Engineer evidences the use of the structural items in installation/commissioning of the Distillery Division. Therefore, the Adjudicating Authority clearly misdirected himself in questioning the receipt and the duty paid nature of these items without any evidence to the contrary - the contentions of the Appellant is agreed that such iron and steel article used for installation of the Distillery Division are eligible for credit both as inputs as well as capital goods within the meaning of Rule 2(k) and Rule 2(a) respectively of the CCR. We find that the definition of input as contained in Rule 2(k) of the CCR was amended by insertion of Explanation 2 to specifically exclude iron and steel articles used in foundation or for making structures to support capital goods from its purview. Further, such items also qualify as capital goods by applying the user test evolved by the Hon’ble Supreme Court in COMMISSIONER OF C. EX., COIMBATORE VERSUS JAWAHAR MILLS LTD. [2001 (7) TMI 118 - SUPREME COURT]reported in COMMISSIONER OF CENTRAL EXCISE, JAIPUR VERSUS M/S RAJASTHAN SPINNING & WEAVING MILLS LTD. [2010 (7) TMI 12 - SUPREME COURT]. Even if these items were used for repairs and maintenance of capital goods, the same were eligible for credit in view of the decision of the Hon’ble Allahabad High Court in DSCL Sugar. Appeal allowed on merits as well as on limitation.
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