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2016 (10) TMI 480 - AT - Central ExciseCenvat credit - credit was disallowed mainly on the ground that various steel items were used in conjunction with boiler, sinter plant, steel melting shop, coke oven etc. and claim has been made that those steel items are to be considered as parts, accessories and capital goods, which was not accepted by the Revenue - Held that:- The eligibility of manufacturer for availing credit on various steel items like in the present case has been a subject matter of decision by the Tribunal and Hon’ble High Courts and Hon’ble Supreme Court. In the appellant s own case the Hon’ble Supreme Court (2015 (4) TMI 569 - SUPREME COURT ) held that railway track and equipments used for handling raw material are eligible for credit. Admittedly, railway tracks are embedded to earth and are not regularly moved from place to place. We find that the structural steel items have been used for the fabrication of support structures for capital goods. The appellants have argued that the various capital goods, such as, kiln, material handling conveyor system, furnace etc. cannot be suspended in mid air. They will need to be suitably supported to facilitate smooth functioning of such machines. It is obvious that the structural items have been suitably worked upon for this purpose. Accordingly, the goods fabricated, using such structurals, will have to be considered as parts of the relevant machines. The definition of Capital Goods includes, components, spares and accessories of such capital goods. Accordingly, applying the User Test to the facts in hand, we have no hesitation in holding that the structural items used in the fabrication of support structures would fall within the ambit of Capital Goods as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat Credit. - Decided in favour of assessee
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