CENVAT credit on structural steel used for support structures and maintenance of capital goods was held admissible.

CENVAT credit was admissible on M.S. angles, channels, beams, TMT bars, CTD bars and H.R. sheets used to fabricate support structures for machinery and to repair and maintain capital goods in the factory. Applying the definition of input and the user test, the Tribunal treated structural items used for fabrication of support structures as eligible where they formed part of the capital goods use. The claim was also supported by Chartered Engineer certificates and consistent prior decisions on similar facts. Credit on the disputed structural materials was therefore allowed in favour of the assessee.

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Issues: Whether CENVAT credit was admissible on M.S. angles, channels, beams, TMT bars, CTD bars and H.R. sheets used for fabrication of capital goods and for repair and maintenance of capital goods.

Analysis: The disputed goods were used in the fabrication of support structures for machinery and for repair and maintenance of capital goods installed in the factory. Applying the definition of input and the principle that structural items used to fabricate support structures for capital goods may qualify as part of the capital goods, the Tribunal followed the settled approach that such use satisfies the user test. The Tribunal also noted that the claim was supported by Chartered Engineer certificates and relied on prior decisions holding credit admissible in similar circumstances.

Conclusion: CENVAT credit on the structural items and related materials was held admissible and the issue was answered in favour of the assessee.

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