Cenvat Credit of steel materials such as angle, channel, plates etc, used for making support structure of plant machinery under the Cenvat Credit rules

[BipadBhanjan dixit]

Use of Angle, channel , plates(chapater heading 72) within plant for making support structure of machinery of DRI plant, SMS plant. Whether Cenvat Credit is allowable u/r 2(a) of the CENVAT CREDIT Rules,( chapter heading 84) in between the period from 01-01-2016 to 30-06-2017. If answer is affirmative, please clarify with justification ,sir (s).

[KASTURI SETHI]

Sh.BipadBhanjan Dixit Ji,

There are so many case laws in your favour. A few decisions are given below :-

1. Oudh Sugar Mills Vs. CCE, Lucknow reported as 2017 (7) TMI 1108 - CESTAT ALLAHABAD as per EXCUS Not challenged by the department).

2. J.B. DARUKA PAPERS LTD.Versus COMMISSIONER OF CENTRAL EXCISE, LUCKNOW reported as 2017 (9) TMI 1717 - CESTAT ALLAHABAD (Challenged by the department in High Court).

3. Yash Papers Ltd. Vs. CCE Allahabad reported as 2017 (8) TMI 990 - CESTAT ALLAHABAD. Not challenged by the department.

[KASTURI SETHI]

2016 (8) TMI 534 - CESTAT ALLAHABAD - MEENU PAPER MILLS PVT. LTD. Versus COMMISSIONER OF C. EX., CUS. & S.T., MEERUT-I

 

[RAMASWAMY Advocate]

In my view cenva credit is eligible for angles, channels etc for setting up plant and machine.

AI Summary

Cenvat Credit eligibility for steel structural components affirmed; credit allowable when used to make machinery support structures.
Cenvat credit is claimable for steel items (angles, channels, plates) used to fabricate support structures for plant machinery under Rule 2(a) of the Cenvat Credit Rules; multiple tribunal decisions and practitioner commentary cited in the forum support allowance of such credit where the materials are incorporated into or used to support plant and machinery, subject to compliance with rule conditions and documentary proof.