TaxTMI 
TaxTMI 
2016 (12) TMI 1122
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.... the appellant availed Cenvat credit were used for fabrication of supporting structures of furnace plant and rolling mill. The authorities below took the view that Cenvat credit is not allowable for the reason that supporting structures of furnace plant and rolling mill were permanently embedded to earth and hence these were not goods and consequently it cannot be said that these goods were used in the manufacture of capital goods. Since appellant failed to get relief even at the stage of Commissioner (Appeals), the present appeal has been filed. 2. I have heard Ms. Rinky Arora, ld. Advocate for the appellant and Shri S.C. Saini, ld. AR for the Revenue. 3. The submissions made by the ld. Advocate is that the steel plates, channels, angles....
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....al in that case held as follows :- "6. The issue regarding the eligibility of steel items namely, bars, flats, channels and sheets used for fabrication of machinery and accessories has been the subject matter of dispute in various cases of similar nature. It is relevant to note here certain basic principles laid down by the Hon'ble Supreme Court in the similar matters. The definition of capital goods under Rule 2(a) of Cenvat Credit Rules, 2004 is very wide and includes all goods of Chapters 82, 84, 85 and 90, a few other specific tariff headings of Central Excise Tariff. Apart from these, other specific items like pollution control equipment, tubes, pipes, etc. storage tanks, the components, spare and accessories of specific goods, etc. ....
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....e manufacture of capital goods which are further used in the factory of the manufacturer. Therefore, the input is not necessarily to be used in the manufacture of final product. By virtue of explanation 2 - goods used in the manufacture of capital goods which are further used in the factory of the manufacturer also falls within the definition of input. In 2009, this explanation has been amended to the following effect : "but shall not include cement, angles, channels Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods." 8. Therefore, the notification of the Legislature is....
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....can be considered as eligible for Cenvat credit as component of capital goods. The Hon'ble High Court held after examining the various case laws in favour of assessee. Applying this principles, we find that the allegation in the show cause notice that steel items used by the appellant are neither components nor spares nor accessories is not sustainable. 9. In the case of Associated Cement Company Ltd. [2011 (267) E.L.T. 55 (Chhattisgarh)], the Hon'ble High Court of Chhattisgarh agreed with the findings of this Tribunal holding that wear plate, MS Plate, angles, channels, etc. used for connecting/fitting fans, casing, ducting in kilns for the manufacture of clinker are eligible for Cenvat credit. Another allegation made in the show cause n....