2014 (12) TMI 80

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.... the outset, ld. Sr. Counsel for the Applicant submits that during the period, April, 2006 to July, 2008, they had availed CENVAT Credit on various items namely, MS Angles, Channels, Joists, Chassis, Plates, HR Steet, Round, Beams, TMT Bars etc. falling under Chapter No.72 of the CETA'85. The ld. Advocate claimed that the said items were considered as 'inputs' under Rule 2(k) of the CENVAT Credit Rules, 2004, being used in or in relation to the fabrication of capital goods inside the factory premises and accordingly CENVAT Credit was availed. He submits that during the relevant period, they had received around 42,300 MT of the aforesaid steel items out of which, they had used 37,970 MT in the fabrication of capital goods inside the factory.....

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....hile passing the impugned Order. He also submits that without proper verification of the use of these fabricated capital goods from the Angles, Channels, Beams etc., it would be incorrect on the part of the Commissioner, to jump to a conclusion that these items were not used in the fabrication of the plant and machinery inside the factory and hence, not eligible to avail the CENVAT Credit under Rule 2(k) of the CENVAT Credit Rules, 2004, 'as inputs'. 3. Per contra, ld. AR for the Revenue submits that the ld. Commissioner on the basis of the reply furnished by the Applicant, has recorded the finding at para 3.8 of the impugned Order, observing that these items were not used in or in relation to the fabrication of the capital goods but in ....

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.... up the Appeal for disposal with the consent of both sides. 6. We find that the issue involved in the present case, revolves in a very narrow compass. It is the claim of the Appellant that the Angles, Beams, Channels etc. which they had procured during the relevant period, and availed CENVAT credit on it, were used in or in relation to the fabrication of the 'capital goods', defined under Rule 2(a) of the CENVAT Credit Rules, 2004. Consequently, they are eligible to avail CENVAT Credit on the same as 'inputs' as prescribed under Rule 2(k) of the CENVAT Credit Rules, 2004. In the show cause notice, it has been alleged that since these items are classified under Chapter No.72 of CETA, 1985, hence, they are not eligible to avail the CENVAT ....