2016 (12) TMI 274

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....Tariff Act, 1985. The controversy in the present case covers the period October, 2008 to April, 2009 during which the appellant availed cenvat credit on various structural materials such as angles, channels, beams, etc. as well as welding electrodes. The Department during audit found that the appellant was using the structural items in the erection and maintenance of support structure of the capital goods such as induction furnace, power plant, etc. in the manufacturing plant for sponge iron. Input such as oxygen gas, welding electrodes, etc/ were used for repair and maintenance purpose. The credit was sought to be denied by issue of Show Cause Notice dated 28.10.2009. The original authority vide its order dated 28.09.2010 confirmed the dut....

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.... not been held allowable. The Tribunal in the case of Singhal Enterprises Vs. CCE, Raipur (supra) held 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 etc., which have been used by the appellants in the fabrication of support structures on which various capital goods are placed? The same stands denied by the lower authority. The learned DR has sought disallowance of the same by citing the decision of the Larger Bench in the case of Vandana Global Ltd. (supra) and other judgments. Further, he has brought to our notice and emphasized the amendment carried out in Explanation-II to Rule 2(a) which defines the term Input w.e.f. 0....

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....ich 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 capital goods. The appellants have argued that the various capital goods, such as, kiln, material handling conveyor system, furnace etc. cannot be suspended in mid air. They will need to be suitably supported to facilitate smooth functioning of such machines. It is obvious that the structural items have been suitably worked upon for this purpose. Accordingly, the goods fabricated, using such structurals, will have to be considered as parts of the relevant machines. The definition of C....