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of <h1>Tribunal allows appeal for CENVAT credit on specific items</h1> <h3>M/s. Shree Kamrej Vibhag Sahakari Khand Udyog Mandli Ltd Versus C.C.E. & S.T. - Surat-II</h3> The Tribunal allowed the appeal, holding that M.S. Angles, Channels, Beams, TMT Bars, CTD Bars, and H.R. Sheets used for fabrication of capital goods and ... CENVAT credit - input - M.S. Angles, Channels, Beams, TMT Bars, CTD Bars H. R. Sheets used for fabrication of machinery and also Repairing and Maintenance Service - Held that: - reliance was placed in the case of KISAN SAHKARI CHINI MILLS LTD. Versus COMMISSIONER OF C. EX. LUCKNOW [2013 (7) TMI 2 - CESTAT NEW DELHI], where it was held that the activity of repair and maintenance of plant and machinery is an activity which has direct nexus with manufacture of final products and the goods used in this activity would be eligible for Cenvat credit - credit on M.S. Angles, Channels, Beams, TMT Bars, CTD Bars H. R. Sheets etc. used for fabrication of capital goods as well as for repairing and maintenance of the capital goods, since supported by the evidence of Chartered Engineers Certificate are eligible to CENVAT credit - appeal allowed - decided in favor of appellant. Issues:- Eligibility of CENVAT credit on M.S. Angles, Channels, Beams, TMT Bars, CTD Bars H.R. Sheets for fabrication of machinery and Repairing and Maintenance Service.Analysis:1. The appellant availed CENVAT credit on various items for fabrication of capital goods and repair/maintenance services. The dispute arose regarding the eligibility of such credit. The Commissioner (Appeals) confirmed the demand for recovery of credit, along with interest and penalty. The appellant appealed against this decision.2. The appellant argued that the items were used for fabrication of capital goods and repair/maintenance of machinery, making them eligible for credit as per the definition of 'input' under Rule 2(k) of CCR, 2004. The appellant cited judgments like Singhal Enterprises Pvt. Ltd. and Metrochem Industries Ltd. to support their claim.3. The Revenue supported the findings of the Commissioner (Appeals). The Tribunal considered the eligibility of CENVAT credit on M.S. Angles, Channels, Beams, TMT Bars, CTD Bars H.R. Sheets for fabrication of capital goods and repair/maintenance services. The Tribunal referred to the judgment in Singhal Enterprises Pvt. Ltd.'s case and the decision in Metrochem Industries Ltd.'s case.4. The Tribunal highlighted the observations made in Singhal Enterprises Pvt. Ltd.'s case regarding the admissibility of credit on structural steel items used in the fabrication of support structures for capital goods. The Tribunal also referred to the 'user test' principle established in previous judgments to determine if goods qualify as capital goods.5. Applying the 'user test' principle and considering the evidence provided, the Tribunal concluded that M.S. Angles, Channels, Beams, TMT Bars, CTD Bars H.R. Sheets used for fabrication of capital goods and repair/maintenance services are eligible for CENVAT credit. The Tribunal set aside the impugned order and allowed the appeal with consequential relief, if any, as per law.
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