2010 (10) TMI 329

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.... Structure, Lattice Type Transmission Towers, Hot Dip Lattice Tower, Lattice Type Tower falling under Chapter sub-heading No. 7308.20 of the Schedule to the Central Excise Tariff under their capital goods credit account. A show cause notice was issued alleging that as per Rule 2(a) of Cenvat Credit Rules, 2004, these above items are not covered under the term 'capital goods'. Hence the demand was confirmed by the adjudicating authority. On appeal before the lower appellate authority, cenvat credit was allowed on the above said items holding that the same was used as accessories to the group of machines and machineries installed in the steel melting shop and no contrary evidence has been adduced by the Revenue. Aggrieved by the said order, t....

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....ph of these impugned goods showing they are accessories to their main machineries. He also relied upon the case law in the case of CCE, Jaipur v. M/s. Rajasthan Spinning & Weaving Mills Ltd. in Civil Appeal No. 3760 of 2003 dated 9-7-2010 [2010 (255) E.L.T. 148 (S.C.) wherein the Apex Court has held that the assessee is entitled to avail of modvat credit in respect of steel plates and M.S. channels used in the fabrication of chimney for the diesel generating set, by treating these items as capital goods. He also relied upon the decision of the Apex Court in the case of Mehra Bros v. Joint Commercial Officer reported in 1991 (51) E.L.T. 173 (S.C.) wherein the Apex Court has held that the articles usable with other parts of main article also ....

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....d steel products within the factory. In another words, the impugned goods are used for effective use of the electrical items which contribute not only to the process of stabilizing the electric power generated in the factory but also leads to manufacture of excisable iron and steel products. 7.3 It is also seen that the impugned goods are very much required for compliance to the provisions of Chapter VIII containing Rule 74 to 93 of the Indian Electricity Rules, 1956 according to which distance and height of the electrical items as prescribed in the said rules are to be maintained and the case of Rajasthaan Spinning & Weaving Mills Ltd. (supra) the Apex Court observed that the user test is to be followed to allow the credit. 8.&e....