CENVAT credit on structural items used for capital goods support and maintenance was held admissible under the user test.

CENVAT credit was held admissible on M.S. channels, plates, angles, welding electrodes and similar items used to fabricate support structures for capital goods and for their repair and maintenance. Applying the user test, the CESTAT Ahmedabad treated such structural items as qualifying as parts, components or accessories of capital goods under Rule 2(a) of the Cenvat Credit Rules, 2004, supported by evidence including Chartered Engineer's certificates. The disallowance of credit and the penalty did not survive, and relief followed in favour of the assessee.

---

---

Issues: Whether CENVAT credit was admissible on M.S. channels, plates, angles, channels, welding electrodes and similar items used for fabrication of support structures and for repair and maintenance of capital goods.

Analysis: The items were found to have been used in the fabrication of support structures necessary for the functioning of capital goods and also in their repair and maintenance. Applying the user test and following the settled view that goods used as parts, components, spares or accessories of capital goods can qualify for credit, the structural items were treated as falling within the ambit of capital goods for the purposes of Rule 2(a) of the Cenvat Credit Rules, 2004. Credit was also supported by evidence such as Chartered Engineer's certificates.

Conclusion: CENVAT credit on the disputed items was held admissible and the finding was in favour of the assessee.

Final Conclusion: The disallowance of credit and the penalty did not survive, and the appeal succeeded with consequential relief.

Ratio Decidendi: Structural items used to fabricate support structures for capital goods, and items used for their repair and maintenance, are eligible for CENVAT credit when they satisfy the user test and function as components or accessories of the capital goods.

---