Cenvat Credit

[srinivasan.K kuppuswamy]

Sir,

We have purchased MS Angle, Beam , HR Sheets for fabrication of Duct, Sand Mixer and other required inside the factory premises for setting up of Sand Plant for manufacture of castings.

Without duct, sand mixer etc sand plant cannot work.

Central excise department objects cenvat credit on HR sheets, MS Angle, Beam etc.

To run foundry Sand Plant is must and for sand plant sand mixer, duct, elevator is mandatory.

Please give your valuable advice with favorable order on Asseessee.

Kind Regards

K.Srinivasan

AI Summary

Cenvat credit for structural steel hinges on user test: eligible when used as components of capital goods, not mere foundations.
Cenvat credit on M.S. angles, beams, channels and HR sheets turns on whether those structural steel items are used as parts/components of capital goods (eligible) or as civil foundations/supporting structures rendering the installation immovable (ineligible). The operative test is the user test and factual determinations about use, permanence and classification of the installation; documentary proof and clear allocation of multifunctional items to machinery erection are critical to sustain credit.