2016 (10) TMI 480

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....p;   2. Brief facts of the case are that the appellants are engaged in the manufacture of steel billets liable to Central Excise duty. They were availing cenvat credit of duty paid on input and capital goods in terms of Cenvat Credit Rules, 2002/2004. After audit of the appellant s records, proceedings were initiated against the appellant on the ground that they have availed cenvat credit on various structural steel items which did not qualify for credit. The case of the Revenue is that various iron steel items like angles, channels, beams, plates etc. were used in the fabrication of technological structures which support the various specified capital goods like boiler, sinter plant, steel melting shop, pulverized coal dust inj....

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....dmittedly, in relation to various capital goods like boiler, sinter plant, melting shop etc. Admittedly, in a manufacturing facility especially for steel billets, the various capital goods are not brought simply as standard items for usage. The various capital goods brought into the factory are to be interconnected, integrated and placed firmly in a manner to make them effectively operational for the intended purpose of manufacture of final product. The objection that the steel items are added to already immovable property is only examines part of the issue without reference to the actual usage and their role in the plant and machinery and other manufacture of final product. The original authority records that the appellants did not avail c....

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....um vs. Doodhaganga Krishan SSKN 2013 (297) ELT 361 (Kar.) also held in similar lines. The Chhattisgarh High Court in UOI vs. Associated Cement Co. Limited 2011 (267) ELT 55 (Chhtt.) allowed cenvat credit on MS plates, angles, channels following the decision of the Hon'ble Supreme Court cited above. 7. In a recent decision in the case of Singhal Enterprises Pvt. Ltd. vs. CC&CE, Raipur vide final order No. 53013/2016 dated 12.08.2016. The Tribunal examined eligibility of similar steel structurals items and held in favour of the manufacturer. The relevant portion of the order is as under: "13. Now we turn to the question, whether credit is admissible on various structural steel items, such as, MS Angles, Sections, Channels, TMT Bar....

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....inning & Weaving Mills Ltd. -2010 (255) ELT 481(SC), wherein the Hon'ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The credit stands allowed in the light of Rule 57Q of the erstwhile Central Excise Rules, 1944. In the said judgment, the Apex Court has referred to the user test evolved by the Apex Court in the case of CCE, Coimbatore vs. Jawahar Mills Ltd. -2001 (132) ELT 3 (SC), which is required to be satisfied to find out whether or not particular goods could be said to be capital goods. When we apply the user test to the case in hand, we find that the structural steel items have been used for the fabrication of support structures for capit....