CENVAT credit on structural steel for capital goods support structures depends on the user test and proof of actual use.

Structural steel and other items used to fabricate support structures for capital goods may qualify for CENVAT credit if the user test under the CENVAT Credit Rules is satisfied. The entitlement, however, must be proved by record evidence showing actual use in fabrication, including supporting material such as a Chartered Engineer's certificate where relevant. Because the record did not contain adequate proof of use, the matter required factual verification by the adjudicating authority. The claim was therefore remanded for fresh adjudication on evidence, leaving the substantive eligibility issue open.

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Issues: Whether CENVAT credit was admissible on steel and other structural items used for fabrication of support structures for capital goods, and whether the claim required verification of supporting evidence.

Analysis: The items in question were claimed to have been used for fabrication and supporting structures within the factory for capital goods. The governing test was whether such use brought the items within the ambit of inputs or parts of capital goods under the CENVAT Credit Rules, applying the user test recognised in earlier decisions. On the facts, structural items used to support capital goods could qualify for credit where they formed part of the fabrication of support structures, but the record did not contain adequate proof of actual use, including a Chartered Engineer's certificate. The claim therefore required factual verification by the adjudicating authority.

Conclusion: Credit on such items was not finally rejected on merits, but the matter was remanded for verification of use and for decision in accordance with the settled legal principle.

Final Conclusion: The appeal was allowed only to the extent of remand, with the substantive eligibility issue left open for fresh adjudication on evidence.

Ratio Decidendi: Structural steel items used in the fabrication of support structures for capital goods may be eligible for CENVAT credit where the user test is satisfied, but entitlement must be established by evidence in the record.

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