TaxTMI 
TaxTMI 
2017 (2) TMI 528
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.... Beevi, C.S.] The above appeal is filed against the disallowance of credit on MS items. Brief facts are that the appellants who are engaged in the manufacture of Sponge Iron are availing the facility of CENVAT credit of duty paid on capital goods, inputs and service tax paid on input services. On scrutiny of ER-1 returns and invoices for the period April, 2010 to March, 2011, it was noticed that ....
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....that the MS items having used for fabrication of capital goods/parts/components the credit ought to have been allowed by the authorities below. The credit is sought to be denied relying upon the decision laid in the case of Vandana Global Ltd. [2010 (253) ELT-440 (Tri-LB)] and also alleging that the MS items do not fall within the definition of capital goods or inputs. The Ld. Counsel drew support....
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....goods after fabrication when fixed to the earth looses the characters of capital goods and become capital assets as laid in Vandana Global Ltd case. 4. I have heard the rival submissions made before me and perused the records. 5. In the impugned order as well as in the order passed by the original authority it is seen that the MS items were used for fabrication of capital goods such as Hopper eq....