2016 (12) TMI 590

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....goods. 2. The dispute in the present case relates to their eligibility for cenvat credit on various structural items like M.S. Angles, Channels, Plates, CTD Bars, Joists, Beams, Welding Electrodes, etc. The period involved is November, 2004 to March, 2009. The Original Authority disallowed the credit on such items on the ground that these items were used in fabrication and manufacture of structures, which have become immovable property fixed to earth. Since the emerging items are not to be considered as the goods for excise purpose, no credit can be allowed on these steel items used for fabrication of immovable structures. The appeal is directed against the denial of credit on these items. The case of the appellant is that the various st....

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....urts and the Supreme Court. We find that there are a larger number of decisions holding that M.S. Angles, Channels, Plates, etc. used in fabrication of structures are eligible for credit as long as they are shown to have been used in Connection with any of the capital goods inside the factory. Though these M.S. Plates and Angles fall under Genera Statutory Items Chapter 72 or 73 of the Central Excise Tariff Act, the purpose of their end use determines their eligibility. The Hon'ble Supreme Court in Rajasthan Spg. & Wvg. Mills Ltd. - 2010 (255) ELT 481 (SC) allowed the credit on steel plates and M.S. Angles, channels used in the fabrication of chimney for diesel generating sets. The Hon'ble Supreme court evolved "user test" to determ....

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....d out in Explanation-II to Rule 2(a) which defines the term 'Input' w.e.f. 07.07.2009. It has further been pleaded that the Cenvat Credit claimed for the period prior to this will be covered within the decision of the Larger Bench in the case of Vandana Global Ltd. (supra). 14.  The Larger Bench decision in Vandana Global Ltd.'s case (supra) laid down that even if the iron and articles were used as supporting structurals, they would not be eligible for the credit. Considering the amendment made w.e.f. 7.7.2009 clarification amendment and hence to be considered retrospectively. However, we find that the said decision of the Larger Bench was considered by the Hon'ble Gujarat High Court in the case of Mundra Ports & Spe....