TMI Blog2017 (3) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Tribunal in the case of Singhal Enterprises Pvt. Limited vs. CCE, Raipur [2016 (9) TMI 682 - CESTAT NEW DELHI], where it was held that 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 CCR, hence will be entitled to the Cenvat Credit - credit allowed - appeal allowed - decided in favor of assessee. - E/1896/2012 - Final Order No. 51916/2017-DB - Dated:- 21-2-2017 - Mr. Ashok Jindal, Member (Judicial) and Mr. V. Padmanabhan, Member (Technical) Rep. by - Ms. Shreya Dahiya, Advocate for the appellants Rep. by - Shri R.K. Manjhi, DR fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Commissioner, this appeal along with stay application has been filed. 3. Heard both the sides and perused the record. 4. The ld. Counsel for the appellant submits that they have explained the use of items that these items are essential for functioning of machines and its alignment. It was also submitted that these machines are fabricated and subsequently attached to concrete foundation with the help of nuts and bolts. To this effect, the appellant has also filed Chartered Engineer certificate dated 07.02.2012. As the use of the items has been explained by the appellant, which shows that these items were used for fabrication of machinery parts. We find that the issue is covered by the decision of the Tribunal in the case of Sing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them as Inputs. 15 . We find that the controversy can be laid to rest by making a reference to the decision of the Apex Court in the case of CCE, Jaipur v. Rajasthan Spinning Weaving Mills Ltd., 2010 (255) E.L.T. 481 (S.C.) = 2010 TIOL-51-SC-CX, wherein the Hon ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The credit stands allowed in the light 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 v. Jawahar Mills Ltd., 2001 (132) E.L.T. 3 (S.C.) = 2002-TIOL-87-SC-CX, which is required to be satisfied to fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D-CX, 2014 (310) ELT 636 (Mad.) = 2014-TIOL-1185-HC-MAD-CX = AND 2014 (305) ELT 558 (Mad.) = 2012-TIOL-1118-HC-MAD-CX all on the same set of facts, though with reference to erstwhile Rule 57Q are also relevant. The Hon'ble Supreme Court in Jayaswal Neco Limited 2015 (319) ELT 247 (SC) allowed Cenvat credit of railway tract materials used for handling raw material processed goods. The Tribunal in Bellary Steel and Alloys Limited vs. CCE, Belgaum 2005 (180) ELT 92 (Tri. Bang.) = 2015-TIOL-290-CESTAT-BANG held that Cenvat credit is available on HR sheet, angles, channels etc. used in fabrication and erection of technological structure and blast furnace and material handling system. Such supporting structure are also capital goods and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 emphasized the amendment carried out in Explanation-II to Rule 2(a) which defines the term Input with effect from 7-7-2009. It has further been pleaded that the Cenvat credit claimed for the period prior to this will be covered within the decision of the Larger Bench in the case of Vandana Global Ltd. (supra). 14 . The Larger Bench decision in Vandana Global Ltd. s case (supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 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 su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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