https://www.taxtmi.com/caselaws?id=422537 Cenvat credit on steel and allied items used to fabricate a furnace, pollution control equipment and other capital goods was found admissible where the goods were received in the factory, their purchase was undisputed, and a Chartered Engineer's certificate supported their use in fabrication. The denial of credit was not sustained because no contrary evidence, diversion proof, or counter-certificate was produced, and the mere fact that the items were used in construction or became embedded to earth was not decisive. Applying the user test, items used in manufacturing equipment or integral plant components can qualify if they satisfy the functional test of capital goods. The demand and penalty were set aside. en-us Mon, 09 May 2022 00:00:00 +0530 Wed, 18 May 2022 08:55:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422537 Cenvat credit on steel and allied items used to fabricate a furnace, pollution control equipment and other capital goods was found admissible where the goods were received in the factory, their purchase was undisputed, and a Chartered Engineer's certificate supported their use in fabrication. The denial of credit was not sustained because no contrary evidence, diversion proof, or counter-certificate was produced, and the mere fact that the items were used in construction or became embedded to earth was not decisive. Applying the user test, items used in manufacturing equipment or integral plant components can qualify if they satisfy the functional test of capital goods. The demand and penalty were set aside. Case-Laws Central Excise Mon, 09 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422537