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2020 (2) TMI 1251 - AT - Central ExciseCENVAT Credit - input/capital goods - M.S. Angles, M.S. Beams, M.S. Plate, M.S. Round Bar, H.R. Sheet, S.S. Plate (Cut Plate), Forged Sheet Bar, M.S. Channels used for repair/maintenance of foundation frame of Return Bagasse Carrier (RBC) - HELD THAT:- It is clear from the case records that the steel items in dispute were consumed by the appellants only for repair/maintenance of foundation frame i.e. the component of the RBC and not for laying down the foundation for RBC. They were used only for the repairing of the frame of RBC. The frame is essential part of the machine and no machinery can be installed without its frame. They can also be said to be essential accessory in a plant/factory. The repair of the said frame is also equally important alongwith the machine. In COMMISSIONER OF CENTRAL EXCISE, RAIPUR VERSUS M/S JINDAL STEELS AND POWER LTD. [2016 (1) TMI 59 - CESTAT NEW DELHI] it has been held that the definition of ‘Capital Goods’ includes components, spares and accessories of such capital goods and applying the ‘User Test’, the structural items used in the fabrication of support structures would fall within the ambit of ‘Capital Goods’ as contemplated under Rule 2(a) hence will be entitled to the Cenvat Credit. The eligibility of various iron and steel items for Cenvat credit, when used in the fabrication of capital goods, technological structures associated with capital goods, have been subject matter of various decisions by the Tribunal. “User Test” is found to be the appropriate test to see whether the items used in the repair/fabrication of support structures would fall within the ambit of ‘Capital Goods’ as contemplated under Rule 2(a) ibid. The steel material in question is not used for laying down the foundation of RBC but is used for the repair of its foundation frame, which by any stretch of imagination cannot be said to be part of that foundation which has been excluded from the purview of the definition of input in Rule 2(k). The appellants are therefore eligible for Cenvat Credits on those items which were rejected by the learned Commissioner. Appeal allowed - decided in favor of appellant.
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