TMI Blog2023 (3) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... ution control system and thus are eligible as inputs and are squarely covered by the definition of input . Reliance has been made on the decision of the Tribunal in the case of M/S. SINGHAL ENTERPRISES PRIVATE LIMITED VERSUS THE COMMISSIONER CUSTOMS CENTRAL EXCISE, 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 Cenvat Credit Rules, hence will be entitled to the Cenvat credit. The impugned orders cannot be sustained and are therefore set aside - Appeal allowed - decided in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of input was made on 07.07.2009 and which was made to be not retrospective. It is the case of the Appellant that the disputed items of iron and steel, cement, welding electrodes etc. were used in the factory in the manufacture of storage tank and also for pollution control system and thus are eligible as inputs and are squarely covered by the definition of input . Reliance has been made on the decision of the Tribunal in the case of Singhal Enterprises Pvt.Ltd. v. Commr. Of Cus. C.Ex., Raipur reported in 2016 (341) E.L.T. 372 (Tri.-Del.). The relevant paragraphs are reproduced:- 9 . We proceed to decide the appeal on the two following issues : (i) Entitlement of Cenvat credit on welding electrodes; and (ii) Availabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Ambuja Cements Eastern Ltd. v. Commissioner of Central Excise, Raipur, 2010 (256) E.L.T. 690 (Chhattisgarh), wherein welding electrodes used for repair and maintenance purpose were also held to be cenvatable. Similarly, in the case of Hindustan 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 fabr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010 (255) E.L.T. 481 (S.C.), 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.), 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 ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, the input is not necessarily to be used in the manufacture of final product. By virtue of explanation 2 - goods used in the manufacturer of capital goods which are further used in the factory of the manufacture also falls within the definition of input. In 2009, this explanation has been amended to the following effect : but shall not include cement, angles, channels Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods. 8 . Therefore, the notification of the Legislature is very clear that it is only the inputs used in the manufacture or constr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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