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2016 (12) TMI 655 - CESTAT NEW DELHI

2016 (12) TMI 655 - CESTAT NEW DELHI - TMI - CENVAT credit - manufacture of Ordinary Portland cement, Pozzolana cement and clinker falling under Chapter 25 of the First Schedule to the Central Excise Tariff Act, 1985 - the appellant took Cenvat credit in respect of certain items in ready to use condition treating the same as capital goods under Rule 2(a) of the Credit Rules. These items were worked upon by the vendor according to specifications given by the appellant. Thereafter, the same were u .....

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d in the light of Rule 57Q of the erstwhile Central Excise Rules, 1944. In the said judgement, 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 (7) TMI 118 - SUPREME COURT OF INDIA], 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 fabricatio .....

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. The definition of capital goods includes, components, spares and accessories of such capital goods. Accordingly, applying the User Test to the facts in hand, we have no hesitation in holding that the structural items used in the fabrication of support structures would fall within the ambit of capital goods as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat credit. - Appeal allowed - credit allowed - decided in favor of appellant-assessee. - App .....

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Ordinary Portland cement, Pozzolana cement and clinker falling under Chapter 25 of the First Schedule to the Central Excise Tariff Act, 1985 (hereinafter Tariff Act ). 3. During the period in dispute, the appellant took Cenvat credit in respect of certain items in ready to use condition treating the same as capital goods under Rule 2(a) of the Credit Rules. These items were worked upon by the vendor according to specifications given by the appellant. Thereafter, the same were used as spares, ac .....

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turing machineries which are ultimately fixed/embedded to the earth, and hence are not goods, as it becomes an immovable property. Therefore, the items used do not qualify as capital goods, defined under Rule 2 of the Credit Rules. 5. The ld. Commissioner while adjudicating the impugned show cause notice has relied on the Larger Bench decision of the Hon ble Tribunal in the case of Vandana Global Ltd. Vs. CCE 2010 (253) ELT 440 (Tri.-LB), negating all the submissions made by the appellant in the .....

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