Cenvat credit on steel items required factual verification of use for repair and maintenance before denial as supporting structurals.

Cenvat credit on steel items depended on their actual end-use: if the goods were used for repair and maintenance of plant and machinery, the credit claim could not be rejected merely as supporting structurals, but required factual verification from the assessee's records. As the appellate record was insufficient to determine use conclusively, the matter was remanded to the original adjudicating authority for fresh examination and decision in light of the legal position laid down by the High Courts, with an opportunity to the assessee to substantiate its claim.

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Issues: Whether Cenvat credit on steel items denied on the allegation of use as supporting structurals was admissible when the assessee claimed that the goods were used for repair and maintenance of plant and machinery.

Analysis: The dispute turned on the actual end-use of the steel items, which could not be conclusively determined at the appellate stage on the material then available. The claim of use for repair and maintenance required verification from the assessee's records and factual examination at the original level. The matter was therefore required to be decided in accordance with the legal position declared by the High Courts after such verification.

Conclusion: The impugned order was set aside and the matter was remanded to the original adjudicating authority for verification of the factual position and fresh decision after giving the assessee an opportunity to establish its case.

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