Cenvat credit on structural steel requires specific proof of use in capital goods; vague claims do not meet the burden.

Cenvat credit on structural steel items used during commissioning was admissible only if the assessee proved with specific evidence that the items were actually used in the manufacture of capital goods put to use in the factory. In the absence of detailed proof linking the steel to particular machinery or components, and with only invoices and a vague chart on record, the burden of proof was not discharged. The absence of any declaration in the ER-1 returns further supported the conclusion that the claim was unsubstantiated. Credit was therefore held inadmissible and the disallowance sustained.

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Issues: Whether Cenvat credit was admissible on structural steel items used during commissioning of the plant and whether the assessee discharged the burden of proving their use in the manufacture of capital goods.

Analysis: The items in dispute were used at the stage of commissioning of the manufacturing units. Since such items were not themselves capital goods, credit as inputs could be taken only if the assessee established that they were actually used in the manufacture of capital goods that were further used in the factory, in terms of Rule 2(k) of the Cenvat Credit Rules, 2004. The records showed only invoices and a vague chart, without specific evidence of the quantity of steel items used in particular machinery or components. The assessee, being in exclusive knowledge of the actual use, failed to discharge the burden of proof. The absence of any declaration in the ER-1 returns further supported the conclusion that the claim was not substantiated.

Conclusion: Cenvat credit was not admissible on the disputed items, and the disallowance was upheld against the assessee.

Ratio Decidendi: Credit on structural steel items is admissible only when the assessee proves with specific evidence that the items were actually used in the manufacture of capital goods that were themselves put to use in the factory; a vague or unsupported claim does not discharge the burden of proof.

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