Cenvat credit on steel for support structures denied where items were used for fabrication, not as capital goods parts.

Steel items used to fabricate supporting structures for capital goods do not qualify as Cenvat credit inputs when they are not components or parts of the capital goods themselves. The applied principle is that goods used for construction or fabrication of support structures fall outside the definition of input under Rule 2(k) of the Cenvat Credit Rules, 2004, which also excludes items used for factory sheds, buildings, foundations, or structures supporting capital goods. On that basis, credit on the steel items was disallowed and the claim failed.

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Issues: Whether steel items used for fabrication of supporting structure for capital goods are eligible for Cenvat credit as inputs.

Analysis: The steel items were used to make supporting structures for capital goods and not as components or parts of the capital goods themselves. The governing principle, as applied in the order, is that such structural items do not qualify as inputs for credit where they are used for construction or fabrication of support structures. The amended definition of input under Rule 2(k) of the Cenvat Credit Rules, 2004 also specifically excludes items used for construction of factory sheds, buildings, foundations, or structures for support of capital goods.

Conclusion: The steel items used for supporting structure are not eligible for Cenvat credit and the claim fails.

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