Cenvat credit on prefabricated structures used in fabricating a cold room was admissible as capital goods components.

Prefabricated structures used to fabricate a cold room falling under Chapter 84 qualified for Cenvat credit as capital goods components under Rule 2(a) of the CENVAT Credit Rules, 2004. The structures were used in the fabrication of capital goods, and credit could not be denied merely because they were themselves classifiable under Chapter 39. Credit was therefore admissible on the structures, and the denial of credit was unsustainable.

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Issues: Whether prefabricated structures used for fabrication of a cold room, which was used for storing pharmaceutical products, qualified for Cenvat credit as capital goods or components thereof.

Analysis: The prefabricated structures were used to fabricate a cold room falling under Chapter 84 of the Central Excise Tariff Act, 1985. Rule 2(a) of the CENVAT Credit Rules, 2004 treats capital goods to include goods falling under Chapter 84 and also components, spares and accessories of such goods. On the facts, the structures were used in the fabrication of capital goods, and credit could not be denied merely because the structures themselves were classifiable under Chapter 39.

Conclusion: The appellant was entitled to avail Cenvat credit on the prefabricated structures, and the denial of credit was unsustainable.

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