TMI Blog2023 (3) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... Plate Bar Rods, HR Plate Coil, Mill Plate, GC Sheet, Flange Beam, GP Sheet, GP Coil, HR Sheet, HR Coil etc. were used in the factory in the manufacture of final capital goods and have been used for Kiln Support, Base, Ground Hoppers, Intermediate Bunkers, Conveyor support, Crusher support, screen support and Cooler platform 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case in brief are that the Appellant is a manufacturer of Sponge Iron. During the period from November 2006 to March 2008 they have availed CENVAT Credit on steel items such as TMT bars, Chequered Plate, M.S. Angles, Channels, Plates, Joists, Beams, HR Plate, Sheet and Coils, G.C. Sheet etc.. Three Show Cause Notices were issued alleging irregular availment of CENVAT Credit on the impugned items and also to recover the alleged irregular availment of CENVAT Credit along with interest and for imposition of penalty as under:- Sl. No. Show Cause Notice date Period Amount Rs. 1. 19.11.2007 November 2006 to March 2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se 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) Availability of Cenvat credit on various structural items, such as, MS Angles, Channels, CTD bar, TMT bar, etc. which have been used in support structure of the capital goods. 10 . As regards the credit of duty on welding electrodes, the appellants have cited the following judicial pronouncements to support the contention that the said credit will be allowable : (i) 2006 (194) E.L.T. 3 (S.C.); (ii) 2002 (140) E.L.T. 372 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old 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) 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 w.e.f. 7-7-2009. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermo 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 construction of capital goods which is construed as input and cenvat credit is available on the duty paid in purchase of such inputs. If the cement, angles, channels, Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (T.M.T.) and other items are used in the construction of factory shed, building or laying of foundation, the duty paid on such items the assessee would not be entitled to cenvat credit. Similarly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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