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2016 (3) TMI 522 - AT - Central ExciseCENVAT credit disallowed - steel items used for the supporting structures - Held that:- As find that the Supdt. Central Excise vide letter dated 20.12.2014 has taken note of the intimation of the appellant that it had not availed Cenvat credit on 255.300 MT of steel items used for the supporting structures as it purchased the same under non-cenvatable documents. The Supdt., Central Excise has not disputed this fact. The adjudicating authority has stated that in the absence of any supporting documents it cannot be ascertained whether the appellant had availed Cenvat credit on 255.300 steel or not. I do not find the said reasoning sufficient to "disallow" credit in relation to 255.300 MTs of steel particularly when the appellant categorically stated that the said steel was obtained under non-cenvatable documents and the same has at no stage been controverted by Revenue. The Supdt., Central Excise in its letter dated 20.12.2014 has noted the appellant's submission in this regard and has not disputed the same. In addition Chartered Engineer's certificate given also certifies that Cenvat credit on 255.300 MTs of steel was not taken. Therefore the demand relating to this quantum of steel which works out to ₹ 8,01,724/- is not sustainable. Regarding 131.930 MTs of steel items eg. beams, joists, channels, angles, flat etc. used for supporting structures, the appellant is only claiming the benefit on the ground of time bar and not on merit. There is no confusion or ambiguity that steel used for supporting structures would neither fall under the category of "capital goods" nor inputs as defined under Cenvat Credit Rules and therefore the credit thereon is not admissible, because the definition of capital goods or inputs by any stretch of imagination could not be understood to include steel used supporting structures within their ambit. Bona fide belief is a belief of reasonable person operating in an appropriate environment. Thus the contention of the appellant regarding bonafide belief that credit on 131.930 MT was admissible is untenable. The appellant has conceded inadmissibility of Cenvat credit of ₹ 48,000/- As regards the welding electrodes it has been held by CESTAT in the case of Vikram Cement Vs. CCE, Indore (2009 (7) TMI 217 - CESTAT, NEW DELHI ) that credit on welding electrodes is not available when used for repair. The appellant has only stated that some of these electrodes may have been used for manufacturing capital goods but has conceded that it has no evidence thereof. Therefore the demand relating to welding electrodes is also sustainable - Decided partly in favour of assessee
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