Cenvat credit on structural steel for capital goods allowed where actual use was shown, despite no itemwise quantification

Cenvat credit was held admissible on MS pipes, channels, angles, girders, bars, structures, plates, shapes and sections used in the manufacture of capital goods and in technical structures of machines and machinery. Actual use in producing capital goods was the relevant test, and credit could not be denied merely because the precise quantity used in each individual machine was not separately quantified. As the use of the impugned goods in the factory premises was not disputed, the absence of itemwise quantification did not justify denial of credit.

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Issues: Whether Cenvat credit was admissible on MS pipes, channels, angles, girders, bars, structures, plates, shapes and sections used in the manufacture of capital goods, and whether denial of credit was justified for want of quantification of the goods used in each machine or machinery.

Analysis: The goods were found to have been used in the manufacture of capital goods and in technical structures of machines and machinery. The requirement was actual use in the manufacture of capital goods, not quantification of the precise quantity used in each individual machine. Since the use of the impugned goods in the factory premises was not in dispute, credit could not be denied merely because the quantity was not separately itemised for each machine.

Conclusion: Cenvat credit was admissible and the denial based on absence of quantification was not sustainable.

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