CENVAT credit on fabrication materials for plant support structures upheld where usage was admitted and precedent supported eligibility.

CENVAT credit on MS plates, MS angles, channels, HR sheets and similar goods used to fabricate support structures for kiln and demineralization plants was held admissible. The denial of credit was unsustainable because the usage of the goods had already been admitted in the show-cause notice, so no further documentary proof was required. The Tribunal also relied on consistent precedent treating such materials, when used for fabrication of supporting structures for machinery, as eligible for credit.

---

---

Issues: Whether CENVAT credit was admissible on MS plates, MS angles, channels, HR sheets and similar items used for fabrication of support structures for kiln plants and demineralization plant, and whether the assessee was required to produce documentary evidence to prove the admitted usage of such goods.

Analysis: The usage of the impugned goods was already stated in the show-cause notice, and the denial of credit was founded on the allegation that the goods were used for fabrication and erection of support structures embedded to earth and were not input or capital goods. Once the usage was admitted in the notice, no further proof by documentary evidence was required. The Tribunal also noted that consistent judicial precedent has held that MS plates, MS angles, channels and HR sheets used for fabrication of supporting structures for machinery such as kiln, conveyor systems and demineralization plants qualify for CENVAT credit.

Conclusion: CENVAT credit was admissible, and the denial of credit was unsustainable.

---