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2017 (6) TMI 367 - AT - Central ExciseCENVAT credit - components of boiler under CETH 8402 - The original authority held that the steel structural items fabricated by M/s. Thyssenkrupp Industries India Pvt. Ltd. at site cannot be called as parts of boilers and they are more appropriately classifiable as Columns/ beams, channels under Chapter 73 of the Central Excise Tariff Act, 1985, and credit was denied - Held that: - The Tribunal in the case of M/s. Monnet Ispat Ltd. & M/s. Cether Vessels Pvt. Ltd. Versus C.C.E. & S.T. Raipur [2017 (3) TMI 544 - CESTAT NEW DELHI] elaborately examined the issue and held that the denial of credit is not justified. In fact, the Tribunal held that even goods such as angles, channels, sections etc. which are classifiable under Chapter 73 and are used for fabrication in the factory for manufacture of support structures which ultimately become part of the boiler would also be eligible for cenvat credit. The Circular dated 18.05.2012 reiterates the Circular dated 02.04.2012 and further clarifies that whether certain structural components were to be treated as boiler parts or as goods for making structures to support the boilers is a question of fact, which requires examination, on a case to case basis. The clarification is to the effect that structural components used for laying foundation or for support of capital goods is not available. We find that when the classification is held to be under Chapter 84, the description of a product being support or a part loses relevance. The re-classification and consequent denial of CENVAT credit on the disputed items are not legally sustainable - appeal allowed - decided in favor of appellant.
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