Cenvat credit on steel used for support structures is inadmissible under the excluded-input definition.

Steel items used to fabricate supporting structures for capital goods do not qualify as eligible cenvat inputs, because they are not used in the manufacture of final products and fall within the exclusion recognised for construction or support structures. The amended definition of "input" under Rule 2(k) of the Cenvat Credit Rules, 2004 expressly excludes items such as cement, angles, channels and CTD/TMT bars used for factory sheds, buildings, foundations or structures supporting capital goods. On that basis, credit on such steel items was inadmissible and the appeal failed.

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Issues: Whether cenvat credit was admissible on steel items used for fabrication of supporting structures for capital goods, and whether the amendment to the definition of input could be applied so as to deny such credit.

Analysis: The steel items were used as supporting structures for capital goods and not as inputs in the manufacture of final products. The controlling legal position, as recognised in the cited Supreme Court decision, is that iron and steel structures used for such support do not qualify as eligible components for credit. In addition, the amended definition of input under Rule 2(k) of the Cenvat Credit Rules, 2004 specifically excludes cement, angles, channels, CTD/TMT bars and similar items used for construction of factory sheds, buildings, foundations, or structures for support of capital goods. On this basis, the credit claimed on such items was not available.

Conclusion: The credit was held to be inadmissible and the appeal failed.

Ratio Decidendi: Steel items used for construction of supporting structures for capital goods fall outside the scope of eligible inputs for cenvat credit, especially after the express exclusion in Rule 2(k) of the Cenvat Credit Rules, 2004.

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