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TMI Blog2016 (2) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... d 17/08/2007 was issued as it appeared to Revenue that the articles of iron and steel on which Cenvat credit have been taken were used by the appellant in construction of civil structure and hence not covered within the definition of input under Rule 2 (k) of CCR, 2004, and therefore, Cenvat credit was not admissible. Accordingly, SCN proposed disallowance and recovery of Rs. 18,36,911/- along with interest and further penalty was proposed. 3. The appellant contested the SCN by urging that, the items in question have been used for making various equipments like Boiler, Vacuum Pan etc. Some items of also been used for making shades for machinery to avoid exposure of machines to rain, sun and weather and also ensure efficient wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pelines fabricated from M.S. Plate also get worn out due to corrosive nature of sugarcane juice which is acidic in nature and requires periodical repairs and replacement. The parts of machinery being of iron also gets worn out due to friction and abrasion caused by motion and/or movement of materials, like bagasse etc. 4. The SCN was adjudicated vide Order-in-Original dated 21/04/2008 and the proposed demand confirmed along with interest and equal amount of penalty under Rule 15(1) of CCR for alleged contravention of Rule 2 & 3 of the said Rules. Being aggrieved, the appellant preferred appeal before learned Commissioner (Appeals), who vide the impugned order have been pleased to dismissed the appeal observing that no specific item o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The learned A.R. for Revenue relies on the impugned order. 7. Having considered the rival contentions, I hold that the appellant is entitled to Cenvat credit on the items of iron and steel in question if the same have been used for fabrication of capital goods, for repair and maintenance of capital goods, for fabrication of staging structures and supporting structures etc. as no excisable products can be manufactured without the same. Further, the amended definition of inputs under the Cenvat Credit Rules provides for availability of Cenvat dredit to a manufacturer on all items utilised by the manufacturer in the factory of production. Accordingly, I allow this appeal by way of remand with a direction to the Adjudicating Aut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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