TMI Blog2016 (11) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... merits. There could be no justification for invoking demand for the extended period as there could be no ground for alleged suppression, fraud, collusion or willful mis-statement in availing the credit on these items by the appellants - Appeal allowed. - Excise Appeal No. 1545 of 2012 - Final Order No. 54381/2016 - Dated:- 21-10-2016 - Dr. Satish Chandra, President And Shri B. Ravichandran, Member (Technical) For the Appellant : Sh. B. L. Narasimhan, Advocate For the Respondent : Sh. Yogesh Agarwal, AR ORDER Per B. Ravinchandrn The appeal is against order dated 29.02.2012 of Commissioner of Central Excise, Jaipur-II. The appellants are engaged in the manufacture of cement liable to central excise duty. During th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery and capital goods is not possible. 3. These iron and steel items were put to various processes like cutting, bending etc. in order to fix them to the required structures. As held by the Tribunal in case of` Mahindra Mahindra Ltd. 2005 (190) ELT 301 (Tribunal-LB), the items that emerge before their integration to the various specified capital goods are liable to excise. On this ratio, the contention that these iron and steel items were used in the creation of immovable property is not tenable. 4. Ld. Counsel for the appellant relied on the various decided cases to submit that the appellants are eligible for cenvat credit on these items. 5. It was also submitted that the amendment carried out in Rule 2 (k) is applicable o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l goods cannot be put into use unless they are placed and integrated in a desired manner for the manufacture of final products. The dispute in the present case is relating to the usage of various iron and steel items like angles, sheets, channels, etc. used by the appellant. On perusal of the chart containing usage of various items and also on perusal of various photographs, we find that these iron and steel items were not used in an civil construction works. They were used in conjunction with various machineries/capital goods/technological structure, which one way or the other contribute to the manufacture process of final products. For instance, hoppers, handle which raw coal are huge structures. To make them functional and to integrate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 64(T-Mum) (h) SKS Ispat Power Ltd.-Final Order No.53591/2016 dt.16.09.2016 (i) Ultratech Cement Ltd.-Final Order No.53625/2016 dt.16.09.2016. 10. In a recent decision, in the case of M/s. Singhal Enterprises Private Limited Final Order No. 53013/2016 dated 12.08.2016 while examining the similar set of facts, the Tribunal observed as below:- 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ight of Rule 57Q of the erstwhile Central Excise Rules, 1944. In the said judgment, the Apex Court has referred to the user test evolved by the Apex Court in the case of CCE, Coimbatore vs. Jawahar Mills Ltd. -2001 (132) ELT 3 (SC), which is required to be satisfied to find out whether or not particular 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 mach ..... X X X X Extracts X X X X X X X X Extracts X X X X
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