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2016 (12) TMI 833 - AT - Central ExciseDenial of CENVAT credit - manufacture of sugar & molasses - credit on various items namely M.S. Bar, M.S. Plate, Shapes & Sections, H.R. Plates etc. and other items falling under chapter 38, 39 & 76 angles, beams and channel etc - denial on the ground that these items were used by the appellant for repair and maintenance of plant and machinery or for modification of the existing plant of the existing machinery and the items are neither inputs nor capital goods. Held that: - We note that the Tribunal has been consistently following the ratio that the steel items when they are used in fabrication of capital goods and their accessories inside the manufacturer premises are eligible for credit by applying user test as evolved by the Hon’ble Supreme Court in Rajasthan Spinning and Weaving Mills Ltd. [2010 (7) TMI 12 - SUPREME COURT OF INDIA]. A reference can be made to latest decision of the Tribunal in Singhal Enterprises Pvt. Ltd. vs. CC&CE, Raipur [2016 (9) TMI 682 - CESTAT NEW DELHI], where applying the “User Test”, it was held 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. Appeal allowed - credit allowed - decided in favor of appellant-assessee.
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