TaxTMI 
TaxTMI 
2013 (9) TMI 536
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....each of the three appellant units took Cenvat credit in respect of Angles, Channels, Plates, Sections, Beams, Flats, etc. claimed to have been used for fabrication of plant and machinery and supporting structures for various machineries and plant. Cenvat credit availed by Bhilai unit, Thana Bhawan, Muzaffarnagar unit and Bhaisana, Muzaffarnagar unit was Rs. 1,65,69,326/-, Rs. 1,90,52,382/- and Rs. 2,02,96,271/- respectively. The department being of the view that this credit was wrongly taken, as there is no evidence that the items, in question, had been used for manufacture of capital goods for use in the factory, issued show cause notices for recovery of this credit along with interest and imposition of penalty. Show cause notices were adj....
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....n of various items of machinery for use in the factory, no evidence in support of this claim has been produced in spite of ample opportunities having been given to the appellants; that neither the manufacture of any capital goods have been declared in ER-1 Returns nor any specific intimation has been given regarding use of the structural steel items in manufacture of capital goods; that when the appellants have taken Cenvat credit in respect of items like M.S. Angles, Channels, Plates, Section etc. falling under Chapter 72 & 73 of Central Excise Tariff Act which are not covered under the definition of capital goods, Cenvat credit in respect of these items would be admissible as input only if there is evidence on record showing their use in ....
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....uilding or laying of foundation or making of structures for support of capital goods." 6. By reading of this Explanation it is apparent that if the inputs have gone into manufacture of capital goods, then only they are eligible for Cenvat credit and such capital goods must be put to actual manufacture of final product. Otherwise, also under Cenvat Credit Rules in order to avail Cenvat credit the assessee has to establish that the items in question were actually put to use for manufacture or in relation to manufacture of final product or the capital goods regarding which the assessee seeks to avail Cenvat credit. On going through records we notice that during adjudication proceedings the appellants placed on record only invoices and a ....