2017 (1) TMI 294

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....d is April 2004 to July 2009. The equivalent penalty has also been imposed on the appellant. 2. The matter concerns with the admissibility of Cenvat credit on steel items used in fabrication/manufacture of various capital goods and technological structures for supporting the capital goods. 3. The appellant has been represented by Ld. Advocate, Sh. Amit Jain and the Revenue has been represented by Ld. AR, Sh. Yogesh Agarwal. 4. Brief facts are that the appellant is engaged in the manufacture, inter alia, of various iron and steel products falling under Chapter 72 of the First Schedule to the Central Excise Tariff Act, 1985. Appellant purchased various steel items (like MS channels, Beams, Joist, Round, Sheets, Angles, Plates etc.) f....

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....ppellant inter alia submits as follows: i. The Cenvat credit has been correctly availed on the impugned iron and steel items as inputs used for manufacture of parts/ components/ accessories of specified capital goods falling under Chapter 82, 84 and 85 of First Schedule to Central Excise Tariff Act, 1985 inasmuch as without these technological support structures, erection, installation and operation of huge machinery would not be possible. These technological structures, therefore, qualify to be considered as parts/ components/ accessories of the capital goods. ii. As per Explanation 2 to Rule 2(k) of Credit Rules, input includes goods used in the manufacture of capital goods which are further used in the factory of manufa....

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.... the user test, held that credit availed on steel items for fabrication of Chimney was admissible. Following the same, in several cases, Cenvat credit on the steel items used for fabrication of capital goods and support structures has been allowed, apploying the user test. Some of these cases are as under: * CCE Vs. Indore Cemnts Ltd.- 2012 (285) ELT 341 (Mad.) * India Cements Ltd. Vs. CCE- 2015 (321) ELT 209 (Mad.) * UOI Vs. Associated Cement Company Ltd.- 2011 (267) ELT 55 (Chhattisgarh) * Singhal Enterprise Pvt. Ltd. Vs. CCE - 2016-TOIL-2451-CESTAT-DEL. * CCE Vs. Jindal Steel & Power Ltd.- 2015 (330) ELT 708 (Tri.-Del.) * Jayaswal Neco Ltd. Vs. CCE- 2015 (319) ELT 247 (SC) * ....