Cenvat credit on support structures used for sugar machinery was allowed as components and accessories, not mere construction material.

Cenvat credit was held admissible on columns, beams, structures, M.S. grating, brackets, staircase and ladder used to support, hold and provide access to sugar manufacturing machinery. Applying Rule 2(b) of the Cenvat Credit Rules, 2002, the items were treated as part of the machinery installation and as components or accessories of the manufacturing equipment, not as mere construction material. The departmental objection was rejected because the disputed items had functional use in the installation and operation of the plant, so the Revenue's challenge failed.

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Issues: Whether Cenvat credit was admissible on items such as columns, beams, structures, M.S. grating, brackets, staircase and ladder, treated as capital goods or components/accessories of sugar manufacturing machinery.

Analysis: The disputed items were found to be used for supporting, holding and providing access to sugar machinery and thus formed part of the machinery installation rather than mere construction material. Applying the definition of capital goods under Rule 2(b) of the Cenvat Credit Rules, 2002 and the settled view that support structures and allied items used for fabrication or installation of manufacturing equipment can qualify as components and accessories, the credit was held to be allowable. The departmental objection that the items were only structural material was rejected.

Conclusion: Cenvat credit on the impugned items was admissible and the objection of the Revenue failed.

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