TMI Blog2018 (4) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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. Appeal dismissed - decided against Revenue. - Appeal No. E/76293/2014, CO-75234/2018 - ORDER NO. FO/75313/2018 - Dated:- 15-3-2018 - Shri P.K.Choudhary, Member (Judicial) Shri D.Haldar, AC(AR) for the for the Appellant/Applicant Shri A.K.Agarwal, C.A. for Respondent ORDER Per Shri P. K. Choudhary 1. The respondents are engaged in the manufacture of sponge iron falling under Chapter 72 of the Central Excise Tariff Act (CETA), 1985. Show Cause Notice was issued alleging contrav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omic Zone Ltd. vs. CCE Cus [2015(39)STR 726 (Guj.)] ii) M/s. Singhal Enterprises Pvt. Ltd. vs. C.Cus C.Ex, Raipur [2016(9)TMI 682, Cestat, New Delhi)] iii) Comm. Of C.Ex, Jaipur vs. M/s. Rajasthan Spinning Weaving Mills Ltd. [2010(7) TMI 12 Supreme Court of India. 4. On perusal of the impugned order I find that the Adjudicating Authority at one hand is accepting that as per the Chartered Engineer s Certificate submitted by the assessee the inputs were consumed in structural support and fabrication, in setting up of kiln, installation of conveyor systems and also for Hooper and storage tank. But simultaneously, denying the cenvat credit on the said items by treating them as used for making support structure. It is seen fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Zinc Limited v. Union of India, 2008 (228) E.L.T. 517 (Raj.), the Hon ble High Court of Rajasthan allowed the Cenvat credit on the welding electrodes. By following said decision, we hold that the appellants are entitled to the credit on welding electrodes considering them as Inputs . 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 decision of the Larger Bench in the case of Vandana Global Ltd. (supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise 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.), 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 machines. It is obvious that the structura ..... X X X X Extracts X X X X X X X X Extracts X X X X
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