TMI Blog2016 (10) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... rack 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. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , channels, beams, plates etc. were used in the fabrication of technological structures which support the various specified capital goods like boiler, sinter plant, steel melting shop, pulverized coal dust injection plant, coke oven conveyors etc. The period involved is February, 2004 to February, 2005. 3. We have heard both the sides and perused the appeal records. We find that the 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. The original authority examined the issue of excisability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines part of the issue without reference to the actual usage and their role in the plant and machinery and other manufacture of final product. The original authority records that the appellants did not avail credit on structural steel items which were used in civil construction or structures. All the structural items were used in connection with manufacturing machinery, plant which are integrated in the appellant s premises. 5. 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 (319) ELT 247 (SC) held that railway track and eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturer. The relevant portion of the order is as under: 13. Now we turn to the question, whether credit is admissible on various structural steel items, such as, MS Angles, Sections, Channels, TMT Bar etc., which have been used by the appellants in the fabrication of support structures on which various capital goods are placed? The same stands denied by the lower authority. The learned DR has sought disallowance of the same by citing the decision of the Larger Bench in the case of Vandana Global Ltd. (supra) and other judgments. Further, he has brought to our notice and emphasised the amendment carried out in Explanation-II to Rule 2(a) which defines the term input w.e.f. 07.07.2009. It has further been pleaded that the cenvat credit cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods could be said to be capital goods. When we apply the user test to the case in hand, 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 cap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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