2016 (1) TMI 1203

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....e Respondent [Order per: Sulekha Beevi, C.S.] 1. The issue involved is the denial of credit availed on MS items as capital goods. 2. The appellants are engaged in the manufacture of Sponge Iron and are also availing Cenvat credit on inputs and 'Capital Goods. It was noticed by the department that the appellants irregularly availed Cenvat credit on MS Channels, MS Plates, Beams, HR Plates,....

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....the authority below explaining the use of MS items in installing and erecting the plant and machinery/parts/components, which are used in making the finished products. Appellants also produced the photographs which would reveal that MS items were used in structure for burning chamber, structure for kiln cooler, transfer chute cooler discharge product separation, electrostatic precipitator, gas coo....

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....ant and machinery/spares/parts/components of capital goods. The issue is settled in the decision laid in Mundra Ports and SEZ Ltd. (Supra) and in the case of India Cements Ltd. Vs CESTAT Chennai(Mad), wherein it was held that credit is admissible on MS items used for support structure of capital goods/components/ parts. The Hon'ble High Court of Gujarat in the case of Mundra Ports has observed tha....