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2022 (9) TMI 623 - Central Excise
CENVAT Credit - capital goods/iron and steel goods - Appellant submits that the impugned iron and steel goods are utilized by them for manufacture of capital goods such as Hopper, Conveyor, components, accessories of Crushing machine and EOT Cranes - HELD THAT:- On examination of the observations made in Para 5.4 of the appeal order wherein the Ld.Commissioner(Appeals) has relied on the decision of the Larger Bench in the case of VANDANA GLOBAL LTD. VERSUS CCE [2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)] to disallow the credit, it is found that the said decision of the Tribunal (Larger Bench) was challenged by the assessee before the Hon’ble Chhattisgarh High Court in M/S VANDANA GLOBAL LIMITED AND OTHERS VERSUS COMMISSIONER, CENTRAL EXCISE AND CUSTOMS, CENTRAL EXCISE [2018 (5) TMI 305 - CHHATTISGARH, HIGH COURT], wherein the Tribunal’s decision had been set aside - the contentions of the Appellant is agreed upon that the very basis followed by the Ld.Commissioner(Appeals) has now been settled in their favour.
In the facts of the present case, it is not in dispute that the various steel items have been used for the purpose of setting up of coal washery plant as also certified by the Chartered Engineer and have been duly verified by the lower authorities at the adjudication stage. Therefore, applying the “user test” principle, as followed by various High Courts, the assessee is entitled to avail credit on the steel items.