CENVAT credit on structural steel for capital goods support structures depends on proven actual use and factual verification.

Structural steel and allied items used to fabricate support structures for capital goods may qualify for CENVAT credit under the user test and can be treated as components, spares, or accessories under the Cenvat Credit Rules, 2004. However, entitlement depends on evidence of actual use. As the record did not adequately support the claimed use of the goods, factual verification was necessary, and the matter was remanded to the adjudicating authority for that limited purpose.

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

Analysis: The items were claimed to have been used in fabrication of support structures for capital goods, which, on application of the user test, can fall within the ambit of capital goods as components, spares, or accessories under the Cenvat Credit Rules, 2004. The principle was accepted, but the actual use of the items was not supported by evidence on record, making factual verification necessary.

Conclusion: In principle, the credit was held admissible, but the matter was remanded to the adjudicating authority for verification of the factual use of the goods.

Final Conclusion: The appeal succeeded to the extent that the eligibility principle was accepted, but final relief depended on factual verification before the adjudicating authority.

Ratio Decidendi: Structural items used in fabrication of support structures for capital goods may qualify for CENVAT credit under the user test, but entitlement must be supported by evidence of actual use.

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