2017 (6) TMI 631

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....on 11A(1) of the Central Excise Act 1944 along with interest and penalty. 2. Briefly the facts of the case are that the appellants are engaged in the manufacture of sponge iron falling under Chapter 72 of the Schedule to the CETA 1985. During the course of audit of the records of the respondent for the period from November 2009 to September 2010 it was noticed that the appellant had availed Cenvat credit on structural items such as MS angles, channels, joists and beams as capital goods. It appeared that the said structural steel items falling under Chapter 72 are used for supporting kiln are not covered under the definition of capital goods in terms of Rule 2(a) of the Cenvat Credit Rules 2004 and hence the credit availed by the appellan....

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.... 2) Andhra Sugars Ltd Vs CCE & C Guntur [2016(343)ELT 1051(Try-Hyd] 3) Madras Cements Ltd Vs CCE Hyderabad[2016(336)ELT 175 (Try-Hyd)] On the other hand learned A.R. relied upon the following decisions: 1) Saraswati Sugar Mills Vs CCE Delhi [2011(270)ELT 465 (S.C.)] 2) Madras Cements Ltd Vs CCE [2010(254)ELT 3(SC) 3) Madras Cements Ltd Vs CCE Trichy [2005(192)ELT 902(Tri-Che) 4) Bajaj Hindustan Ltd Vs UOI [2013(295)ELT 20 (All] 5) CCE & C Ghaziabad Vs Rathi Steel & Power Ltd [2015 (321)ELT 200 (All)] 3. After considering the submissions of both the parties and perusal of the material on record, I find that the issue is no more resintegra and has been settled in favor of t....

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....ce, etc. cannot be suspended in mid-air. They will need to be suitably supported to facilitate smooth functioning of such machines. It is obvious that the structural items have been suitably worked upon for this purpose. Accordingly, the goods fabricated, using such structurals, will have to be considered as parts of the relevant machines. The definition of 'Capital Goods' includes, components, spares and accessories of such capital goods. Accordingly, applying the User Test to the facts in hand, we have no hesitation in holding that the structural items used in the fabrication of support structures would fall within the ambit of Capital Goods as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the ....