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2018 (2) TMI 568

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..... cannot be accepted. Tribunal in the identical situation in the case of Commissioner of Central Excise & Customs Vs. M/s. SPS Steel & Power Limited [2017 (7) TMI 844 - CESTAT KOLKATA] dismissed the appeal filed by the Revenue. Appeal dismissed - decided against Revenue. - Excise Appeal No. 75078/2014 - Final Order No. F/75153/2018 - Dated:- 9-2-2018 - Shri P. K. Choudhary, Hon ble Judicial Member Sri A.K. Biswas, Supdt. (A.R.) For Appellant Sri Rohit Ranjan Sinha, Advocate For Respondent ORDER Per Shri P. K. Choudhary Briefly stated the facts of the case are that the Assessee is engaged in the manufacture of Pig Iron classifiable under Chapter 72 of the First schedule to the Central Excise Tariff Act, 1985. .....

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..... 5. I find that the Chartered Engineer has categorically mentioned the quantity of Angles, Channels and Joists used in the manufacture of the said capital goods in detail. Therefore, the contention of the Revenue that the appellant had not given any details of the consumption of the said materials cannot be accepted. I find that the Tribunal in the identical situation in the case of Commissioner of Central Excise Customs Vs. M/s. SPS Steel Power Limited vide Order No. F/76328/2017 dated-12.07.17 dismissed the appeal filed by the Revenue. The relevant portion of the said decision is reproduced below : 5. We have heard both the sides and perused the appeal records. Only point of dispute in this case is the eligibility of respondent .....

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..... ved by the Hon ble Supreme Court has been consistently followed by various High Courts as well as this Tribunal while deciding the disputes of similar nature. Admittedly, in large number of cases, the Tribunal as well as various High Courts allowed credit in similar set of facts. A reference can be made in the recent decisions of Tribunal in the case of M/s. Singhal Enterprises Pvt. Ltd. Vs. CCE-2016-TIOL-2451-CESTAT-DEL and in M/s. Lafarge India Ltd. Vs. CCE[2016-TIOL-2875-CESTAT-DEL]. In Lafarge, the Tribunal observed: 6. We find that apart from the various other case laws relied upon by the appellant as above, the decisions of Hon ble Madras High Court in India Cements Limited- 2012 (285) ELT 341 (Mad.) =2011-TIOL-558-HC-MAD-CX 2014 .....

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..... ribunal has been consistently following the ratio that the steel items when they are used in fabrication of capital goods and their accessories inside the manufacturer premises are eligible for credit by applying user test as evolved by the Hon ble Supreme Court in Rajasthan Spinning and Weaving Mills ltd. (Supra). A reference can be made to latest decision of the Tribunal in Singhal Enterprises Pvt Ltd. Vs. CC CE, Raipur vide final order No. 53013/2016 dated 12.08.2016 = 2016-TIOL-2451- CESTAT-DEL. The findings of the Tribunal are 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 .....

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..... 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 use test evolved by the Apex Court in the case of CCE, Coimbatore Vs. Jawahar Mills Ltd. 2001 (132) ELT 3 (SC)= 2002-TIOL-87-SC-CX, which is required to be satisfied to find out whether or not particular goods could be said to be capital goods. When be 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. T .....

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