TMI Blog2018 (7) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided in Jawahar Mills Ltd. [2001 (7) TMI 118 - SUPREME COURT OF INDIA] - Admittedly, in large number of cases, the Tribunal as well as various High Courts allowed credit in similar set of facts. Credit allowed - appeal dismissed - decided against Revenue. - Appeal No. E/71126/13, CO-76257/2014 - FO/75692/2018 - Dated:- 20-3-2018 - Shri P.K. Choudhary, Member(Judicial) Shri H.S. Abedin, AC(AR) for the Revenue Shri Shekhar Sharad, CA for the Respondent ORDER Per Shri P.K Choudhary. The facts of the case in brief are that the respondents are engaged in the manufacture of sponge iron and MS Ingots classifiable under chapter 72 of the first schedule to the Central Excise Tariff Act, 1985. The respondents had avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n favour of the respondent assessee. The ld.Consultant also submitted various case laws decided by the Tribunal, Hon'ble High Courts and Hon'ble Supreme Court in support of his submissions. 5. I have heard both the sides and perused the appeal records. 6. Only point of dispute in this case is the eligibility of CENVAT credit on various iron and steel items used for the manufacturing of the support structure of machines installed in the plant and structure of the plant and in turn used for manufacturing of Sponge Iron. I have perused the impugned order which allowed the credit on these items. The usage of these items in various capital goods/parts and components of such capital goods fabricated inside the plant of the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 (310) ELT 636 (Mad.) =2014-TIOL-1185-HC-MAD-CX and 2014 (305) ELT 558 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 on railway track 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.)-2005-TIOL-290-CESTAT-BANG held that cenvat credit is available on HR sheet, angles, channels etc. used in fabrication and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn 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) and other judgments. Further, he has brought to our notice and emphasized the amendment carried out in Explanation-Il to Rule 2 (a) which defines the term 'input' w.e.f. 07.07.2009. It has further been pleaded that the cenvat credit claimed for the period prior to this will be covered within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticular 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. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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