Cenvat credit on structural steel for support structures depends on user test and proof of actual use; matter remanded for verification.

Cenvat credit on structural steel used to fabricate support structures for capital goods may be admissible where the items form part of the machinery or its components, applying the user test under Rule 2(k) and Rule 2(a) of the Cenvat Credit Rules, 2004, and treating the 7-7-2009 amendment as prospective. However, the claim must be supported by evidence of actual use, and the record here, including the Chartered Engineer's certificate, was found insufficient for that purpose. The matter was therefore remanded to the adjudicating authority for factual verification of eligibility on the disputed items in light of the settled legal principle and the evidence to be produced.

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Issues: Whether Cenvat credit was admissible on structural steel items used in fabrication of support structures for capital goods, and whether the matter required remand for verification of use by evidence.

Analysis: The claim was examined in the light of Rule 2(k) and Rule 2(a) of the Cenvat Credit Rules, 2004. The Tribunal noted the settled principle that structural items used to fabricate support structures for capital goods may qualify for credit when they form part of the machinery or its components, applying the user test and relying on the view that the 7-7-2009 amendment was prospective. At the same time, the Tribunal found that the claim of actual use had not been substantiated by evidence, including a Chartered Engineer's certificate, and therefore required factual verification by the adjudicating authority.

Conclusion: The matter was remanded to the adjudicating authority to examine eligibility of credit on the disputed items in the light of the settled legal principle and the evidence to be produced by the appellant.

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