Cenvat credit on Chapter 73 structural items denied where goods were used to make non-capital-goods structures and fittings.

Chapter 73 items used to erect cycle stands, racks, walls, roof structures, gates and trolleys were held not to qualify as capital goods for Cenvat credit purposes, because materials used to make structures do not fall within the definition of capital goods under the settled Larger Bench view. Items used for making almirahs and racks were also not admissible as inputs where the resulting articles themselves were outside the capital goods definition. Credit was therefore denied and the disallowance was upheld.

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Issues: Whether Cenvat credit as capital goods was admissible on Chapter 73 items used for erecting cycle stand, store bin, raw racks, rack jali, tools break, brass bags, roof structure, gate wall and trolleys.

Analysis: The items in question were used for constructing structures such as cycle stands, racks and walls. On the settled view taken by the Larger Bench, such Chapter 73 items used for making structures do not fall within the definition of capital goods. Items used for making almirahs and racks also cannot be treated as inputs for capital goods when the resulting articles are themselves outside the definition of capital goods.

Conclusion: Cenvat credit was not admissible and the denial of credit was justified.

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