2016 (12) TMI 1450

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....nge & Power Ltd., the appellant, is engaged in the manufacture of products of Chapter 72 (sponge iron & MS ingots).For manufacturing of its final product, appellant has used CTD Bars, Angles, Channels, Plates, Joists, Flats etc. in the manufacture (including technical structures) of Kiln, Heat Exchanger, Pollution Control Equipment, Chimney for ESP, Inductin Furnace, Storage Tank for Diesel & water etc. Appellant has taken Cenvat Credit for the same. 2.1 The Department raised audit objection saying that the aforesaid goods were neither inputs nor capital goods, therefore, the cenvat credit amount of Rs. 73,19,594/- availed by the appellant is required to be reversed. Show cause notice dated 25.8.2008 was issued which was decided by the imp....

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....on'ble Supreme Court applied the User Test evolved by the Hon'ble Supreme Court in the case of C.C.E., Coimbatore & Ors. vs. Jawahar Mills Ltd. & Ors. 2001 (132) ELT 3 (SC). The appellant has emphatically contended that the subject goods structural steel items were used for manufacturing Kiln, Heat Exchanger, Pollution Control Equipment, Chimney for ESP, Induction furnace, Coal Shed Filter etc. which in turn have been used for manufacture of sponge iron and MS ingots. The appellant has pleaded that subject steel items used for fabrication/manufacturing the above capital goods including technical structures which are in the nature of capital goods, therefore, are covered either as inputs or as capital goods under Rule 2(a) of Cenvat Credit R....