Cenvat credit on foundation materials used for plant and machinery was upheld after verification of consumption details.

Cenvat credit on cement, MS angles, channels, beams, bars and similar materials used for the foundation of plant and machinery was found admissible where the revised Chartered Engineer's certificate and annexure explained the actual location and purpose of consumption on a plant-and-machinery-wise basis. The materials were treated as having been used for capital goods in the factory, and no ground was found to deny credit. The denial of Cenvat credit was therefore set aside in favour of the assessee.

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Issues: Whether Cenvat credit was admissible on cement, MS angles, channels, beams, bars and similar materials used for the foundation of plant and machinery in the factory.

Analysis: The matter had earlier been remanded only to verify the Chartered Engineer's certificate and the consumption details of the materials. The revised certificate and annexure were found to be more elaborate and to explain the actual location and purpose of consumption of the materials on a plant-and-machinery-wise basis. On that basis, the materials were treated as having been used for capital goods in the factory, and no reason was found to deny the credit.

Conclusion: Cenvat credit was held admissible and the denial of credit was set aside, in favour of the assessee.

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